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olga nikolaevna [1]
3 years ago
12

At the end of the current year, Accounts Receivable has a balance of $675,000; Allowance for Doubtful Accounts has a debit balan

ce of $5,400; and sales for the year total $3,000,000. An analysis of receivables indicates the uncollectible receivables are estimated to be $45,000. a. Determine the amount of the adjusting entry for bad debt expense. $fill in the blank 1 b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Adjusted Balance Accounts Receivable $fill in the blank 2 Allowance for Doubtful Accounts fill in the blank 3 Bad Debt Expense fill in the blank 4 c. Determine the net realizable value of accounts receivable. $fill in the blank 5
Business
1 answer:
melomori [17]3 years ago
4 0

Answer:

a) The amount of the adjusting entry for bad debt expense = $50,400.

b) The adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense are:

1. Adjusted Balance Accounts Receivable = $675,000

2. Allowance for Doubtful Accounts = $45,000

3. Bad Debt Expense = $50,400

c. Determine the net realizable value of accounts receivable = $630,000

Explanation:

A) Data and Calculations:

Accounts Receivable balance = $675,000

Allowance for Doubtful Accounts = $5,400 (debit)

Sales for the year = $3,000,000

Estimated uncollectible receivables = $45,000

Amount of adjustment for bad debt expense = $50,400 ($45,000 + $5,400)

b) The net realizable value of accounts receivable is determined by subtracting the amount of the Allowance for Doubtful Accounts ($45,000) from the balance of Accounts Receivable ($675,000).  This results to a realizable value of $630,000 ($675,000 - $45,000).

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Please see the detailed solution below:

Explanation:

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Bob and mary are financing $180,500 for a new home. their lender will approve an interest rate of 5% if bob and mary pay two dis
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Bob and mary are financing $180,500 for a new home. their lender will approve an interest rate of 5% if bob and mary pay two discount points at closing. Cost them is $3,610.

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Answer:

1. <em>If this law of contributory negligence applies to the state, then Ramona will receive no compensation for the damages she sustained. </em>

<em> </em>2<em>. If this law of comparative negligence applies to this state, then Ramona will get 100% - 20% = 80% of the damages incurred in the accident, from John which will be $80,000</em>

<em />

Explanation:

In contributory negligence, the defense completely bars plaintiffs from any recovery if they contribute to their own injury through their own negligence.

<em>If this law of contributory negligence applies to the state, then Ramona will receive no compensation for the damages she sustained. </em>

<em> </em>

In comparative negligence, the plaintiff's damages is award by the percentage of fault that the fact-finder assigns to the plaintiff for his or her own injury i.e the plaintiff's damage compensation is reduced by percentage of his/her percentage of fault.

<em>If this law of comparative negligence applies to this state, then Ramona will get 100% - 20% = 80% of the damages incurred in the accident, from John</em>

this is 80% of $100,00 which is equal to <em>$80,000</em>

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