Question: At the beginning of the year Lennon Electronics had an

At the beginning of the year, Lennon Electronics had an accounts receivable balance of $29,800 and a balance in the allowance for doubtful accounts of $2,425 (credit). During the year, Lennon had credit sales of $752,693, collected accounts receivable in the amount of $653,800, wrote off $20,400 of accounts receivable, and had the following data for accounts receivable at the end of the period:
1. Determine the desired postadjustment balance in allowance for doubtful accounts.
2. Determine the balance in allowance for doubtful accounts before the bad debt expense adjusting entry is posted.
3. Compute bad debt expense.
4. Prepare the adjusting entry to record bad debt expense.

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  • CreatedSeptember 22, 2015
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