1. A company had the following items and amounts in its unadjusted trial balance as of December...
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Question:
1. A company had the following items and amounts in its unadjusted trial balance as of December 31 of the current year:
Debit Credit
Cash sales 88,000
Credit sales 275,000
Accounts receivable 96,000
Allowance for doubtful accounts 1,000
Prepare the adjusting entry to estimate bad debts under each of the following separate situations.
1. Bad debts are estimated to be 2.5% of credit sales.
2. An aging analysis estimates that 8% of the outstanding accounts receivable will be uncollectible.
Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
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