L&P Inc. accounts for its bad debts using the allowance method. On December 31, the company had
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L&P Inc. accounts for its bad debts using the allowance method. On December 31, the company had gross accounts receivables recorded on its books of $25,870. On that date, the allowance for bad debts account had a credit balance of $450. During the year, the company had $100,000 in sales. Bad debts are calculated as 5% of net credit sales. What entry needs to be made to the allowance for bad debts account to record this information?
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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