Duck Ponds, Inc. uses the allowance method to determine their bad debt expense.

The allowance for bad debts is based upon the balance in accounts receivable.

Based upon past experience A. Duck Ponds, Inc. uses the rate of 0.75% (.0075) of

accounts receivable to determine the appropriate balance in the Allowance for

Doubtful accounts. Calculate the amount of the adjusting journal entry and record

the journal entry associated with this transaction.

Email YouTube P Pandora Pintrest N Netflix Twitter fFacebook D c Duck Ponds, Inc. Trial Balance December 31, 20XX Account Title Debit Credit Cash $19,300 47,630 250 1,680 6,800 113,520 Accounts receivable Allowance for doubtful accounts Prepaid rent Supplies Investments Furniture 15,350 12,800 Accumulated depreciation- furniture Equipment Accumulated depreciation- equipment 44,600 1,830 Building 89,900 Accumulated depreciation building 28,600 6,240 19,750 Accounts payable Salary payable Unearned revenue, customer deposits Bonds payable Premium of bonds payable Common stock 150,000 6,000 20,000 54,920 Retained earnings Dividends Revenue Salary expense Rent expense Utilities expense 5,250 128,800 51,600 5,000 10,410 0 0 0 5,650 12,000 0 0 $428,940 Depreciation esxepense-furniture Depreciation expense-equipment Depreciation expense-building dvertising expense Supplies expense Bad debts expense Interest expense Total $428,940