Exercise 7-10 Estimating bad debts LO P3

At December 31, Folgeys Coffee Company reports the following results for its calendar year.

Its year-end unadjusted trial balance includes the following items.

Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (a) 3% of credit sales, (b) 1% of total sales and (c) 6% of year-end accounts receivable.

Journal 1: Record Bad Debts Expense assuming uncollectibles are estimated to be 3% of credit sales.

Journal 2: Record Bad Debts Expense assuming uncollectibles are estimated to be 1% of total sales.

Journal 3: Record Bad Debts Expense assuming uncollectibles are estimated to be 6% of year-end accounts receivable.

Cash sales Credit sales $920,0e0 320,000 Accounts receivable Allowance for doubtful accounts $145,000 debit 7,000 debit Journal entry worksheet 2 Record Bad Debts Expense assuming uncollectibles are estimated to be 3% of credit sales. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general journal