Improved Technologies has estimated bad debts using the percentage-of-sales method since their business began operations in 2011.Information relating to bad debts and sales is as follows:

At the beginning of 2014,Improved proposes changing their estimation of bad debt expense from 3 percent of sales to 2.5 percent.Sales for the year totaled $186,000 and actual bad debts amounted to $3,910.
(1)Prepare the journal entry to record bad debt expense at the end of 2014.
(2)Determine the balance in "Allowance for Bad Debts" on December 31,2014.

Question

Improved Technologies has estimated bad debts using the percentage-of-sales method since their business began operations in 2011.Information relating to bad debts and sales is as follows:
  
At the beginning of 2014,Improved proposes changing their estimation of bad debt expense from 3 percent of sales to 2.5 percent.Sales for the year totaled $186,000 and actual bad debts amounted to $3,910.
(1)Prepare the journal entry to record bad debt expense at the end of 2014.
(2)Determine the balance in "Allowance for Bad Debts" on December 31,2014.

Quizplus · Accepted Answer

The Answer of Improved Technologies has estimated bad debts using the percentage-of-sales method since their business began operations in 2011.Information relating to bad debts and sales is as follows:
  
At the beginning of 2014,Improved proposes changing their estimation of bad debt expense from 3 percent of sales to 2.5 percent.Sales for the year totaled $186,000 and actual bad debts amounted to $3,910.
(1)Prepare the journal entry to record bad debt expense at the end of 2014.
(2)Determine the balance in "Allowance for Bad Debts" on December 31,2014.

Improved Technologies Has Estimated Bad Debts Using the Percentage-Of-Sales Method