Estimated worth of uncollecttable accounts 3200. Related accounts just prior to entering adjusting entries are below. Prepare adjusting entries and compute net realizable value.



Accounts Receivable______________________________32000
Allowance for Bad Debts__________________________________400
Bad Debt Expense________________________________0

Estimated worth of uncollecttable accounts 3200. Related accounts just prior to entering adjusting entries are below. Prepare adjusting entries and compute net realizable value.



Accounts Receivable______________________________32000
Allowance for Bad Debts__________________________________400
Bad Debt Expense________________________________0
Is the book value of the uncollectible accounts $3200? If so, credit Allowance for Bad Debts for $2,800 and debit Bad Debt Expense for $2,800.