Test marketing involves offering a product for sale to a random sample of people in the top 10 u. s. cities. in as broad a geographic region as possible. to consumers that are representative of the target market. on a limited basis in a defined area. only on certain days of the week and hours of the day.

At the end of the current year, accounts receivable has a balance of $550,000; allowance for doubtful accounts has a credit balance of $5,500; and sales for the year total $2,500,000. an analysis of receivables estimates uncollectible receivables as $25,000. determine the net realizable value of accounts receivable after adjustment. (hint: determine the amount of the adjusting entry for bad debt expense and the adjusted balance of allowance of doubtful accounts.)