On December 31, Burr Company's books showed accounts receivable of $275,000; sales revenue of $1,250,000 (70%...

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On December 31, Burr Company's books showed accounts receivable of $275,000; sales revenue of $1,250,000 (70% were on credit); and Allowance for Doubtful Accounts of $2,500 (credit balance). Required: Calculate and prepare journal entries to record the estimate for bad debts, assuming: 1. There is 10% of the accounts receivable balance is assumed to be uncollectible. 2. Bad debts expense is estimated to be 2% of credit sales. On December 31, Burr Company's books showed accounts receivable of $275,000; sales revenue of $1,250,000 (70% were on credit); and Allowance for Doubtful Accounts of $2,500 (credit balance). Required: Calculate and prepare journal entries to record the estimate for bad debts, assuming: 1. There is 10% of the accounts receivable balance is assumed to be uncollectible. 2. Bad debts expense is estimated to be 2% of credit sales.

Answer rating: 100% (QA)

To calculate and prepare the journal entries for the estimate of bad debts for Burr Company well con... View the full answer