Question: At each calendar yearend rivka supply co uses the percent

At each calendar year-end, Rivka Supply Co. uses the percent of accounts receivable method to estimate bad debts. On December 31, 2011, it has outstanding accounts receivable of $139,500, and it estimates that 2% will be uncollectible. Prepare the adjusting entry to record bad debts expense for year 2011 under the assumption that the Allowance for Doubtful Accounts has
(a) A $2,371 credit balance before the adjustment
(b) A $487 debit balance before the adjustment.

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  • CreatedMarch 18, 2015
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