Providing for Doubtful Accounts
At the end of the current year, the accounts receivable accounthas a debit balance of $696,000 and sales for the year total$7,890,000.
The allowance account before adjustment has a debit balance of$9,400. Bad debt expense is estimated at 3/4 of 1% of sales.
The allowance account before adjustment has a debit balance of$9,400. An aging of the accounts in the customer ledger indicatesestimated doubtful accounts of $30,100.
The allowance account before adjustment has a credit balance of$6,400. Bad debt expense is estimated at 1/2 of 1% of sales.
The allowance account before adjustment has a credit balance of$6,400. An aging of the accounts in the customer ledger indicatesestimated doubtful accounts of $53,100.
Determine the amount of the adjusting entry to provide fordoubtful accounts under each of the assumptions (a through d)listed above.
Providing for Doubtful Accounts
At the end of the current year, the accounts receivable accounthas a debit balance of $696,000 and sales for the year total$7,890,000.
The allowance account before adjustment has a debit balance of$9,400. Bad debt expense is estimated at 3/4 of 1% of sales.
The allowance account before adjustment has a debit balance of$9,400. An aging of the accounts in the customer ledger indicatesestimated doubtful accounts of $30,100.
The allowance account before adjustment has a credit balance of$6,400. Bad debt expense is estimated at 1/2 of 1% of sales.
The allowance account before adjustment has a credit balance of$6,400. An aging of the accounts in the customer ledger indicatesestimated doubtful accounts of $53,100.
Determine the amount of the adjusting entry to provide fordoubtful accounts under each of the assumptions (a through d)listed above.
