Pronghorn, Inc. had net sales in 2020 of $1,465,800. At December 31, 2020, before adjusting entries,...

Transcribed Image Text:

Pronghorn, Inc. had net sales in 2020 of $1,465,800. At December 31, 2020, before adjusting entries, the balances in selected accounts were Accounts Receivable $337,800 debit, and Allowance for Doubtful Accounts $2,590 credit. If Pronghorn estimates that 9% of its receivables will prove to be uncollectible. Prepare the December 31, 2020, journal entry to record bad debt expense. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 Bad Debt Expense Allowance for Doubtful Accounts Pronghorn, Inc. had net sales in 2020 of $1,465,800. At December 31, 2020, before adjusting entries, the balances in selected accounts were Accounts Receivable $337,800 debit, and Allowance for Doubtful Accounts $2,590 credit. If Pronghorn estimates that 9% of its receivables will prove to be uncollectible. Prepare the December 31, 2020, journal entry to record bad debt expense. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 Bad Debt Expense Allowance for Doubtful Accounts

Answer rating: 100% (QA)

Dec 31 2020 Bad debt expense 27812 Allowance for Doubtful accoun... View the full answer