QUESTION $24$

Brule Co$.$ has been in business five years. The unadjusted trial balance at the end of the current year shows:

Accounts Receivable

Sales Revenue $$30,000$ Dr$.$

Allowance for Doubtful Accounts

$$180,000Cr.$

$$2,000$ Dr$.$

Bad debts are estimated to be $10\%$ of receivables. Prepare the entry to adjust Allowance for Doubtful Accounts.

Allowance for Doubtful Accounts $3,000$

Bad Debt Expense

$3,000$

Bad Debt Expense

$3,000$

Alliwance for Doubtful Accounts $3,000$

Bad Debt Expense $,5,000$

Allowance for Doubtful Accounts $5,000$

Allowance for Doubtful Accounts $2,000$

Bad Debt Expense

$2,000$