Business, 21.01.2021 22:40, matt3987

Blossom Company uses the percentage-of-receivables basis to record bad debt expense. Accounts receivable (ending balance) $505,000(debit)
Allowance for doubtful accounts (unadjusted) 4,100(debit)

The company estimates that 3% of accounts receivable will become uncollectible.

Required:
a. Prepare the adjusting journal entry to record bad debt expense for the year.
b. What is the ending (adjusted) balance in Allowance for Doubtful Accounts?
c. What is the cash (net) realizable value?

Answers: 2

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Blossom Company uses the percentage-of-receivables basis to record bad debt expense. Accounts recei...