he trial balance before adjustment of Larkspur, Inc. shows the following balances:

		Dr.		Cr.
Accounts receivable		$101,600
Allowance for doubtful accounts		1,915
Sales revenue (all on credit)				$658,500
Sales returns and allowances		30,600

Give the entry for bad debt expense for the current year assuming the allowance should be 5% of gross accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount

SHOW LIST OF ACCOUNTS

Give the entry for bad debt expense for the current year assuming historical records show that, based on accounts receivable aging, the following percentages will not be collected: (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

		Balance		Percentage Estimated to Be Uncollectible
0–30 days outstanding		$34,400		1%
31–60 days outstanding		46,500		5%
61–90 days outstanding		12,700		12%
Over 90 days outstanding		8,000		18%

Account Titles and Explanation	Debit	Credit
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount

SHOW LIST OF ACCOUNTS

Give the entry for bad debt expense for the current year assuming allowance for doubtful accounts is $1,915 but it is a credit balance and the allowance should be 5% of gross accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount

SHOW LIST OF ACCOUNTS

Give the entry for bad debt expense for the current year assuming allowance for doubtful accounts is $1,915 but it is a credit balance and historical records show that the following percentages will not be collected: (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

		Balance		Percentage Estimated to Be Uncollectible
0–30 days outstanding		$34,400		1%
31–60 days outstanding		46,500		5%
61–90 days outstanding		12,700		12%
Over 90 days outstanding		8,000		18%

Account Titles and Explanation	Debit	Credit
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount

Answer rating: 100% (QA)

Solution Give the entry for bad debt expense for the current year assuming the allowance should be 5 ... View the full answer