Exam2 Ver1 - Version 1 ACCOUNTS RECEIVABLE 1. What was the...

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Version 1 ACCOUNTS RECEIVABLE 1. What was the net realizable value of accounts receivable that the company reported on its January 1, 2008 balance sheet under the allowance method? Answer: $__ 840,000 ______ Accounts Receivable $850,000 Less: Allowance for Bad Debts ( 10,000) Accounts Receivable, net $840,000 2. What would the journal entry be during the year 2008 to write-off the uncollectible account receivables? Account Title Dr. Cr. Allowance for Bad Debts 5,000 Accounts Receivable 5,000 3. Uncollectible accounts are estimated to be 2% of outstanding accounts receivable at the end of the year. Prepare the December 31, 2008 adjusting journal entry for the bad debt expense using the allowance method: Account Title Dr. Cr. Bad Debt Expense 20,200 Allowance for Bad Debts 20,200 Accts Receivable Allow for Bad Debts BB 850,000 10,000 BB (a) 945,000 530,000 (b) (c) 5,000 5,000 © EB 1,260,000 5,000 Bal. 20,200 entry required
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Exam2 Ver1 - Version 1 ACCOUNTS RECEIVABLE 1. What was the...

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