Question: Question 5 (1 point) Joy Co. uses the allowance method of accounting for bad debts. Their Allowance for Doubtful Accounts has a year-end credit

Question 5 (1 point) Joy Co. uses the allowance method of accounting

Question 5 (1 point) Joy Co. uses the allowance method of accounting for bad debts. Their Allowance for Doubtful Accounts has a year-end credit balance, prior to adjustment, of $700. The bad debts are estimated at 3% of $600,000, the net credit sales. Prepare the year end adjusting journal entry for bad debt expense. Ob DR: Bad debt expense $21000 CR: Allowance for doubtful accounts $21000 DR: Bad debt expense $700 CR: Allowance for doubtful accounts $700 DR: Bad debt expense $18000 CR: Allowance for doubtful accounts $18000 DR: Accounts Receivable $18000 CR: Allowance for doubtful accounts $18000

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