Larkspur, Inc. had 2017 net sales of $1,475,200. As of December 31, 2017, before the adjusting entries, the balances in the selected accounts were Accounts Receivable debit $212,500 and Allowance for Bad Debtors $1,828 debit. Assume that 11% of the accounts receivable will be uncollectible. Prepare the entry to record bad debt expenses.

The account titles are correct but

bad credit expenses

allowance for doubtful accounts

When I do the calculations of (212,500 x 0.11) - 1828 = 21547, the answer is wrong.

the same with the second part

Larkspur, Inc. had 2017 net sales of $1,475,200. As of December 31, 2017, before the adjusting entries, the balances in the selected accounts were Accounts Receivable debit $212,500 and Allowance for doubtful accounts credit $3,410. Suppose Larkspur prepares an aging schedule that estimates total bad debts at $25,600.

 Prepare the entry to record bad debt expenses.

Answer rating: 100% (QA)

Bad debt expense Allowance fo... View the full answer