At December 31 of the current year,a company reported the following:
Total sales for the current year:
$780,000 includes $160,000 in cash sales
Accounts receivable balance at Dec.31,end of current year:
$190,000
Allowance for Doubtful Accounts balance at January 1,beginning of current year:
$8,300
Bad debts written off during the current year:
$6,800.
Prepare the necessary adjusting entries to record bad debts expense assuming this company's bad debts are estimated to equal:
(a)1.5% of credit sales.
(b)5% of accounts receivable.

Question

At December 31 of the current year,a company reported the following:
Total sales for the current year:
 $780,000 includes $160,000 in cash sales
Accounts receivable balance at Dec.31,end of current year:
 $190,000
Allowance for Doubtful Accounts balance at January 1,beginning of current year:
 $8,300
Bad debts written off during the current year:
 $6,800.
Prepare the necessary adjusting entries to record bad debts expense assuming this company's bad debts are estimated to equal:
(a)1.5% of credit sales.
(b)5% of accounts receivable.

Quizplus · Accepted Answer

The Answer of At December 31 of the current year,a company reported the following:
Total sales for the current year:
 $780,000 includes $160,000 in cash sales
Accounts receivable balance at Dec.31,end of current year:
 $190,000
Allowance for Doubtful Accounts balance at January 1,beginning of current year:
 $8,300
Bad debts written off during the current year:
 $6,800.
Prepare the necessary adjusting entries to record bad debts expense assuming this company's bad debts are estimated to equal:
(a)1.5% of credit sales.
(b)5% of accounts receivable.

At December 31 of the Current Year,a Company Reported the Following