Roeker Company provides information systems consultation services to large companies in the Chicagoland area. Due to a

Question:

Roeker Company provides information systems consultation services to large companies in the Chicagoland area. Due to a dip in the economy, Roeker has increased the percentage of credit sales which it believes will be uncollectible from 3.0% to 3.2% for 2019. Roeker's consulting services provided revenues of $700,000 in 2019. During 2020, Roeker has write-offs of $750 related to goods purchased in 2019. Prior to the write-off for the $750 default, Roeker's and allowance for doubtful accounts balances were $480,000 and $232 (credit), respectively.
Required:
1. Prepare the journal entry to record the defaulted account.
2. Prepare the adjusting entry to record the bad debt expense for 2019?
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...