121. Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases and indicate the ending balance in each case. 122. Journalize the following transactions using...

121. Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases and indicate the ending balance in each case.

122. Journalize the following transactions using the allowance method of accounting for uncollectible receivables.



June 10 Received $1,100 from Jim Dobbs and wrote off the remainder owed of $4,000.


Oct. 11 Reinstated the account of Jim Dobbs and received $4,000 cash in full payment.

11Cash4,000

123. At the end of the current year, Accounts Receivable has a balance of $700,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and net sales for the year total $3,500,000. Bad debt expense is estimated at 1/2 of 1% of net sales.


Determine (a) the amount of the adjusting entry for bad debt expense; (b) the adjusted balances of Accounts Receivable, Allowance of Doubtful Accounts; and Bad Debt Expense; and (c) the net realizable value of accounts receivable.