Ridoy Company determines its allowance for doubtful accounts by applying an expected loss percentage of 1 percent
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Question:
Ridoy Company determines its allowance for doubtful accounts by applying an expected loss percentage of 1 percent to the total of credit sales. Prior to the adjusting entry, the allowance account has a balance.
How much will be charged to expense in the adjusting entry based on the given information for year ending Dec 31st? Record the entries on Dec 31, 2021 for recording the expenses
Debit | Credit | |||
Total Sales | 690,500 | |||
Total Credit Sales | 625,000 | |||
Allowance for Doubtful Accounts | 1,150 |
Related Book For
College Accounting A Contemporary Approach
ISBN: 978-0077639730
3rd edition
Authors: David Haddock, John Price, Michael Farina
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