At each calendar year-end, Mazie Supply Co. uses the percent of accounts receivable method to estimate bad

Fantastic news! We've Found the answer you've been seeking!

Question:

At each calendar year-end, Mazie Supply Co. uses the percent of accounts receivable method to estimate bad debts. On December 31, 2013, it has outstanding accounts receivable of $55,000, and it estimates that 2% will be uncollectible.

Prepare the adjusting entry to record bad debts expense for year 2013 under the assumption that the Allowance for Doubtful Accounts has (a) a $415 credit balance before the adjustment. (b) a $291 debit balance before the adjustment. Adjusting entries (all dated December 31, 2013