During December, McComb Co. had net credit sales of $1,000,000. On December 1, 2017, the Allowance for Doubtful Accounts had a debit balance of $2,000. Experience indicates that the ending balance in the allowance for doubtful accounts should be 5% of net credit sales (percentage-of-sales basis). If the accounts receivable balance at December 31 was $100,000, what amount should be reported as bad debt expense for the year?

2. On April 1, Adams Inc. borrowed $10,000 from Boston Bank, signing a four-month note payable. The note requires interest at an annual rate of 12%, and all interest is payable (due) at maturity. What journal entry would Boston Bank. make at the end of April?

    

   
   

Answer rating: 100% (QA)

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