On December 31 of the current year, Kellan Company. reported the following: 

Total sales for the current year of $850,000, which included $75,000 in cash sales. Accounts receivable balance at Dec. 31 of the current year $250,000 

2. In October, Z-Mart had $505,000 in net credit sales and $90,000 in accounts receivable. 

Calculate the days’ sales uncollected for October.  7/8 Bad debts written off during the current year Credit balance in Allowance for Doubtful Accounts at January 1 of the current year: $ 2,000 $ 1,500 Prepare any adjusting entries required to record bad debts expense for the current year, assuming Kellan estimates bad debts will be: (a) About 1.75% of credit sales. (b) About 6% of accounts receivable.

Answer rating: 100% (QA)

Answer Adjusting entries required to record bad debts expense for the current year assuming Kellan e... View the full answer