Burl Brothers provided the following information regarding its accounts receivable at the beginning of the current year:

Question:

Burl Brothers provided the following information regarding its at the beginning of the current year:
Accounts receivable…………………………… $ 1,320,000
Allowance for doubtful accounts…………….. ( 320,000)
Net realizable value …………………………... $ 1,000,000
The company reported net credit sales of $ 21,000,000 during the year, of which it collected $ 9,900,000. The company wrote off $ 51,000 of actual bad debts for the year. Burl Brothers estimates the allowance for doubtful accounts at 4% of the ending balance. Prepare the journal entry to record the year- end adjusting entry for the bad debt expense. 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...