Current Attempt in Progress

Kingston Co$.$ uses the percentage$-$of$-$receivables basis to record bad debt expense and concludes that $1\%$ of accounts receivable will

become uncollectible. Accounts receivable are $$420,000$ at the end of the year, and the allowance for doubtful accounts has a credit

balance of $$1,500.$

$($a$)$

Prepare the adjusting journal entry to record bad debt expense for the year. $($Credit account titles are automatically indented when

amount is entered. Do not indent manually.$)$

Account Titles and Explanation

Debit

Credit

eTextbook and Media

List of Accounts$($b$)$

If the allowance for doubtful accounts had a debit balance of $$800$ instead of a credit balance of $$1,500,$ determine the amount

to be reported for bad debt expense.

Bad Debts Expense

eTextbook and Media

List of Accounts