Rowe Company had credit sales of $200,000 during 2014. The balance in the Allowance for Doubtful Accounts

Question:

Rowe Company had credit sales of $200,000 during 2014. The balance in the Allowance for Doubtful Accounts is a $1,000 debit balance. Journalize the bad debts expense for December 31, using each of the following methods:
a. Bad debts expense is estimated at 0.5% of credit sales.
b. The aging of indicates that $2,200 will be required in Allowance for Doubtful Accounts account to cover 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...