Question: (computing Bad Debts and preparing journal Entries) The trail balance before adjustment of Estefan Inc.shows the following balances Accounts Receivable DR 80000 Allowance for Doubtful
(computing Bad Debts and preparing journal Entries) The trail balance before adjustment of Estefan Inc.shows the following balances Accounts Receivable DR 80000 Allowance for Doubtful Accounts DR 1750 sales. Net (all on credit) CR 580000 Instructions Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% of gross accounts receivable and (b)1% of net sales.
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