At the end of each year, Deutch Supply Co. uses the simplified balance sheet approach (i.e., percent

Question:

At the end of each year, Deutch Supply Co. uses the simplified approach (i.e., percent of to estimate bad debts. On December 31, 2014, it has outstanding of $159,000 and estimates that 3.5% will be uncollectible.
Required
a. Give the entry to record bad debt expense for 2014 under the assumption that the Allowance for Doubtful Accounts has a $1,950 credit balance before the adjustment.
b. Give the entry under the assumption that the Allowance for Doubtful Accounts has a $1,950 debit balance before the adjustment. Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...