Business, 12.12.2019 20:31 kylecharlton

Acompany had credit sales of $5.0 million for the year and estimates its bad debts to be 1% of net credit sales. the accountant for the company is thinking about switching to the aging of accounts receivable method, and after preparing the aging schedule, the estimate of uncollectible accounts at year-end equals $48,000. accounts receivable has a $450,000 debit balance, and the allowance for doubtful accounts has a credit balance of $3,000 prior to adjustment.
a. the journal entry to adjust the books when the net credit sales method is used to account for bad debts will be: debit and credit?
b. the journal entry to record bad debts expense when theaging of accounts receivable method is used would be: ?
c. what will be the ending balance in the allowance fordoubtful accounts after the accounts have been adjusted when the net credit sales method was used?
d. what will be the ending balance in the allowance for doubtful accounts after the accounts have been adjusted when theaging of accounts receivable method was used ?
e. what is the net realizable value of accounts receivableafter adjustment when the net credit sales method is used?

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Acompany had credit sales of $5.0 million for the year and estimates its bad debts to be 1% of net c...

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