Duncan Company reports the following financial information before adjustments. Dr. Cr. Accounts Receivable $100,000 Allowance for Doubtful
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Question:
Duncan Company reports the following financial information before adjustments.
Dr. | Cr. | |
---|---|---|
Accounts Receivable | $100,000 | |
Allowance for Doubtful Accounts | $2,000 | |
Sales Revenue (all on credit) | 900,000 | |
Sales Returns and Allowances | 50,000 |
Instructions
Prepare the journal entry to record Bad Debt Expense assuming Duncan Company estimates bad debts at
(a) 5% of accounts receivable and
(b) 5% of accounts receivable but Allowance for Doubtful Accounts had a $1,500 debit balance.
Related Book For
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
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