Answer:
a.
$15,300
b.
Accounts Receivable $ 520,000
Allowance for Doubtful Accounts $19,800
Bad Debt Expense $15,300
c.
$500,200
Explanation:
Bad debt Expense will be calculated using the percentage of debt loss. The expense will be calculated using the account receivable balance.
Allowance for Doubtful Accounts is estimated as $19,800
Current Balance = $4,500 credit
a.
As Allowance for Doubtful Accounts already have credit balance of $4,500, we need to adjust the remainder to make the closing balance of Allowance for Doubtful Accounts $19,800 at the year end.
Adjustment Value = $19,800 - $4,500 = $15,300
b.
Adjusted Balances
Accounts Receivable $ 520,000
Allowance for Doubtful Accounts $19,800
Bad Debt Expense $15,300
c.
Net realizable value of Accounts receivable is the net value of Account receivable and Allowance for Doubtful Accounts.
Net realizable value of accounts receivable = $520,000 - $19,800 = $500,200
