Acme Discount Wholesale Company has a $145,000 balance in Accounts Receivable and a $420 debit balance in Allowance for Doubtful Accounts at year-end just prior to recording adjusting entries. Credit sales for the period totaled $960,000. How much is the amount of the bad debt adjusting entry if Acme estimates that 1.5% of its receivables will be uncollectible?

 

 

Answer rating: 100% (QA)

To calculate the amount of the bad debt adjusting entry we need to determine the estim... View the full answer