On December 31, 2019, Balloon Buddies had a balance in Accounts Receivable of $39,000. Net credit sales for the year were $334,000. The Allowance for Doubtful Accounts has a debit balance of $700. Journalize the recording of the bad debts expense under the income statement approach if 1.4% of net credit sales is deemed uncollectible.

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The Answer of On December 31, 2019, Balloon Buddies had a balance in Accounts Receivable of $39,000. Net credit sales for the year were $334,000. The Allowance for Doubtful Accounts has a debit balance of $700. Journalize the recording of the bad debts expense under the income statement approach if 1.4% of net credit sales is deemed uncollectible.

On December 31, 2019, Balloon Buddies Had a Balance in Accounts