The trial balance before adjustment of Reba McIntyre Inc. shows the following balances.

Instructions
Prepare the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of

(a) 4% of gross accounts receivable and

(b) 1% of net sales.

Transcribed Image Text:

Dr Cr. $90,000 Accounts Receivable Allowance for Doubtful Accounts Sales (all on credit) 1,750 $680,000