Problem 1: The LMN Co. uses the direct write-off method of accounting for uncollectible accounts receivable. The entry to write off an account that has been determined to be uncollectible would be as follows: ________.
a. debit Allowance for Doubtful Accounts; credit Accounts Receivable
b. debit Sales Returns and Allowance, credit Accounts Receivable
c. debit Uncollectible Accounts Expense; credit Allowance for Doubtful Accounts
d. debit Accounts Receivable, credit Uncollectible Accounts Expense
e. debit Uncollectible Accounts Expense; credit Accounts Receivable
Problem 2: After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $450,000 and Allowance for Doubtful Accounts has a balance of $25,000. What is the net realizable value of the accounts receivable?
- $25,000
- $425,000
- $450,000
- $455,000