The following information is available for Quality Book Sales's sales on account and accounts receivable:
Accounts Receivable Balance, January 1, Year 2 $ 78,500
Allowance for Doubtful Accounts, January 1, Year 2 4,710
Sales on Account, Year 2 550,000
Collections of Accounts Receivable, Year 2 556,000
After several collection attempts, Quality Book Sales wrote off $2,850 of accounts that could not be collected. Quality Book Sales estimates that 0.5 percent of sales on account will be uncollectible.
Required
Compute the following amounts:
(1) Using the allowance method, the amount of uncollectible accounts expense for Year 2.
(2) Net realizable value of receivables at the end of Year 2.
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Home » Business » The following information is available for Quality Book Sales's sales on account and accounts receivable: Accounts Receivable Balance, January 1, Year 2 $ 78,500 Allowance for Doubtful Accounts, January 1, Year 2 4,710 Sales on Account, Year 2