Use the information presented in BE8-4 for Battle Tank, Inc. (a) Instead of estimating the uncollectibles at

Question:

Use the information presented in BE8-4 for Battle Tank, Inc.

(a) Instead of estimating the uncollectibles at 2% of net sales, assume that 10% of accounts receivable will prove to be uncollectible. Prepare the entry to record bad debts expense.

(b) Instead of estimating uncollectibles at 2% of net sales, assume Battle Tank prepares an aging schedule that estimates total uncollectible accounts at $24,600. Prepare the entry to record bad debts expense.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Aging Schedule
Aging schedule is an accounting table that shows a company’s account receivables. It is an summarized presentation of accounts receivable into a separate time brackets that the rank received based upon the days due or the days past due. Generally...