Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a
Question:
Providing for Doubtful Accounts
At the end of the current year, the accounts receivable account has a debit balance of $1,051,000 and sales for the year total $11,910,000.
a. The allowance account before adjustment has a credit balance of $14,200. Bad debt expense is estimated at 1/2 of 1% of sales.
b. The allowance account before adjustment has a credit balance of $14,200. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $45,400.
c. The allowance account before adjustment has a debit balance of $9,500. Bad debt expense is estimated at 1/4 of 1% of sales.
d. The allowance account before adjustment has a debit balance of $9,500. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $78,900.
Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above.
a. $
b. $
c. $
d. $
Accounting
ISBN: 9781337902687
28th Edition
Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider