Empire Records Company has credit sales of $375,000 and accounts receivable of $50,000 on December 31, 2019. Management estimates that 5% of its credit sales will be uncollectible. The company's unadjusted trial balance shows a $200 credit balance in Allowance for Doubtful Accounts. 1.) Prepare the adjusting entry to record estimated uncollectible accounts at December 31, 2019. Accounts Date Debit Credit 2.) Prepare the T-account to show the ending balance for the Allowance for Doubtful Accounts account. 3.) What is the net realizable value that will appear on the balance sheet at Dec. 31st? $

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Empire Records Company has credit sales of $375,000 and accounts receivable of $50,000 on
December 31, 2019. Management estimates that 5% of its credit sales will be uncollectible. The
company's unadjusted trial balance shows a $200 credit balance in Allowance for Doubtful
Accounts.
1.) Prepare the adjusting entry to record estimated uncollectible accounts at December 31, 2019.
Date
Accounts
Debit
Credit
2.) Prepare the T-account to show the ending balance for the Allowance for Doubtful Accounts
account.
3.) What is the net realizable value that will appear on the balance sheet at Dec. 31st? $
Transcribed Image Text:Empire Records Company has credit sales of $375,000 and accounts receivable of $50,000 on December 31, 2019. Management estimates that 5% of its credit sales will be uncollectible. The company's unadjusted trial balance shows a $200 credit balance in Allowance for Doubtful Accounts. 1.) Prepare the adjusting entry to record estimated uncollectible accounts at December 31, 2019. Date Accounts Debit Credit 2.) Prepare the T-account to show the ending balance for the Allowance for Doubtful Accounts account. 3.) What is the net realizable value that will appear on the balance sheet at Dec. 31st? $
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