QUESTION #16: Instructions: Prepare adjusting entry at Dec. 31, 2017, for bad debt expense under each of following assumptions: An aging schedule indicates that 9,410 of accounts receivable will be uncollectible. The company estimates that 2.4% of sales will be uncollectible. Prepare adjusting entry at Dec. 31, 2017, for bad debt expense under each of following assumptions: Repeat part (a)(1) assuming that instead of a credit balance, there is a 965 debit balance in Allowance for Doubtful Accounts. Repeat part (a)(2) assuming the 1,900 debit balance in Allowance for Doubtful Accounts and the company estimates that 2.7% of sales will be uncollectible.
COMPANY INFO: At Dec. 31, 2017, trial balance of Maersk Alabama Company contained the following amounts before adjustment. Debit Credit Accounts Receivable 311,000 Allowance for Doubtful Accounts 3,950 Sales Revenue 1,230,000
(a) 1&2 GENERAL JOURNAL
Dec	Account Title	Debit	Credit
(1)
(2)
(b) 1 & 2
Dec	Account Title	Debit	Credit
(1)
(2)