Allowance for Doubtful Accounts and Bad Debt Expense The 12/31/21 trial balance before adjustment of Risen...

 

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Allowance for Doubtful Accounts and Bad Debt Expense The 12/31/21 trial balance before adjustment of Risen Company reports the following balances: Accounts receivable Allowance for doubtful accounts Sales (all on credit) Sales returns and allowances Dr. $150,000 $ 2,500 850,000 40,000 (a) Prepare the adjusting entries to record estimated bad debts assuming that doubtful accounts are estimated to be 6% of gross accounts receivable. (b) Prepare the adjusting entries to record estimated bad debts assuming that doubtful accounts are estimated to be 1% of net sales. 7. Assume that all the information in 6. above is the same, except that the Allowance for Doubtful Accounts has a debit balance of $2.500 instead of a credit balance. a. Prepare the adjusting entries to record estimated bad debts assuming that doubtful accounts are estimated to be 6% of gross accounts receivable. b. Prepare the adjusting entries to record estimated bad debts assuming that doubtful accounts are estimated to be 1% of net sales. Allowance for Doubtful Accounts and Bad Debt Expense The 12/31/21 trial balance before adjustment of Risen Company reports the following balances: Accounts receivable Allowance for doubtful accounts Sales (all on credit) Sales returns and allowances Dr. $150,000 $ 2,500 850,000 40,000 (a) Prepare the adjusting entries to record estimated bad debts assuming that doubtful accounts are estimated to be 6% of gross accounts receivable. (b) Prepare the adjusting entries to record estimated bad debts assuming that doubtful accounts are estimated to be 1% of net sales. 7. Assume that all the information in 6. above is the same, except that the Allowance for Doubtful Accounts has a debit balance of $2.500 instead of a credit balance. a. Prepare the adjusting entries to record estimated bad debts assuming that doubtful accounts are estimated to be 6% of gross accounts receivable. b. Prepare the adjusting entries to record estimated bad debts assuming that doubtful accounts are estimated to be 1% of net sales.

Answer rating: 100% (QA)

a Adjusting entry for 6 of gross accounts receivable Bad debt expe... View the full answer