Duncan Company reports the following financial information before adjustments.

Instructions

Prepare the journal entry to record Bad Debt Expense assuming Duncan Company estimates bad debts at

(a) 5% of accounts receivable

(b) 5% of accounts receivable but Allowance for Doubtful Accounts had a $1,500 debit balance.

Transcribed Image Text:

Cr. Cr. Dr. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue (all on credit) Sales Returns and Allowances $100,000 $ 2,000 900,000 50,000