At the end of the year, the company reported: Total sales of $375,000 of which $67,500 were cash sales. Accounts receivable balance is $37,000. Allowance for Doubtful Accounts had a beginning credit balance of $3,025, and $2,325 were written off during the year.

A. What is the balance in Allowance for Doubtful Accounts at the end of the year before adjusting entry?

B. What is the adjusting entry if bad debts are estimated to be 2% of Accounts receivable?

C. What is the adjusting entry if bad debts are estimated to be 3.5% of credit sales?

Answer rating: 100% (QA)

Total sales 375000 cash sales 67500 Credit salesTotal sales Cash sales 307500 AnswerA Opening allowa... View the full answer