E$6-9($Algo$)$ Recording Bad Debt Expense Estimates and Write$-$Offs Using the Percentage of Credit Sales

Method L$06-2$

Prepare journal entries for each transaction:

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

On September $29,$ an account receivable for $$3,500$ was determined to be worthless and written off.

The company estimates $2\%$ of credit sales are uncollectible. At year$-$end $($December $31),$ it recorded the appropriate bad debt

expense adjustment. Credit sales for the year were $$790,000.$ On December $30,$ there were $$600$ of accounts receivable not yet

collected and the balance in the allowance for doubtful accounts was $$14.$

Journal entry worksheet

Record the entry for bad debt expense.

Note: Enter debits before credits.

E$6-9($Algo$)$ Recording Bad Debt Expense Estimates and Write$-$Offs Using the Percentage of Credit Sales

Method L$06-2$

Prepare journal entries for each transaction:

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

On September $29,$ an account receivable for $$3,500$ was determined to be worthless and written off.

The company estimates $2\%$ of credit sales are uncollectible. At year$-$end $($December $31),$ it recorded the appropriate bad debt

expense adjustment. Credit sales for the year were $$790,000.$ On December $30,$ there were $$600$ of accounts receivable not yet

collected and the balance in the allowance for doubtful accounts was $$14.$

Journal entry worksheet

Record the entry to write$-$off the uncollectible account.

Note: Enter debits before credits.