Prior to recording the recovery and collection of a $2,200 account receivable previously written off and the adjusting entry for bad debt expense for the year, the general ledger reflected the following information: Required:
a. Compute the amount of the bad debt expense, assuming it is based on 1.8% of net sales.
b. Prepare the adjusting entry for bad debts assuming it is based on 3% of the ending accounts receivable.

Question

Prior to recording the recovery and collection of a $2,200 account receivable previously written off and the adjusting entry for bad debt expense for the year, the general ledger reflected the following information:  Required: 
a. Compute the amount of the bad debt expense, assuming it is based on 1.8% of net sales.
b. Prepare the adjusting entry for bad debts assuming it is based on 3% of the ending accounts receivable.

Quizplus · Accepted Answer

The Answer of Prior to recording the recovery and collection of a $2,200 account receivable previously written off and the adjusting entry for bad debt expense for the year, the general ledger reflected the following information:  Required: 
a. Compute the amount of the bad debt expense, assuming it is based on 1.8% of net sales.
b. Prepare the adjusting entry for bad debts assuming it is based on 3% of the ending accounts receivable.

Prior to Recording the Recovery and Collection of a $2,200