Question: During its first year of operations Atlas Travel earned revenue

During its first year of operations, Atlas Travel earned revenue of $400,000 on account. Industry experience suggests that Atlas Travel’s bad debts will amount to 2% of revenues. On December 31, 2013, accounts receivable total $90,000. The company uses the allowance method to account for un-collectibles.
Journalize Atlas Travel’s Bad Debt Expense using the percentage of sales method. Show how Atlas should report Accounts Receivable on its balance sheet on December 31, 2013.

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  • CreatedJuly 08, 2015
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