Journalize the adjusting entry on December 31, 2018, for Bad Debts Expense, which is estimated to be

Question:

Journalize the adjusting entry on December 31, 2018, for Bad Debts Expense, which is estimated to be 5% of net credit sales. The income statement approach is used. The following information is given:

Accounts Receivable Sales (credit) Sales Returns and Allowances Dr. Cr. Dr. Cr. Dr. Cr. 27,000 104,000 500 Allowance for Doubtful Sales Discount Accounts Dr. Cr. Dr. Cr. 9,600 5,800