Paul Anchor, Incorporated estimated that bad debt expense would equal 4 of the ending balance of accounts receivable for the current year This years ending balance of accounts receivable amounted to $ 2,500,000 There was a $ 69,000 credit balance in the allowance for uncollectible accounts prior to...

Description Amount Ending accounts receivable balance 2500000 ...

Paul Anchor, Incorporated estimated that bad debt expense would equal 4% of the ending balance of accounts

Question:

Paul Anchor, Incorporated estimated that bad debt expense would equal 4% of the ending balance of for the current year. This year’s ending balance of amounted to $ 2,500,000. There was a $ 69,000 credit balance in the allowance for uncollectible accounts prior to the year- end adjustment. Prepare the adjusting journal entry to record the bad debt provision for the current year. 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...