The custodian of a $570 petty cash fund discovers that the fund has $102.50 in coins...

Transcribed Image Text:

The custodian of a $570 petty cash fund discovers that the fund has $102.50 in coins and currency plus $454.50 in receipts at the end of the month. The entry to replenish the petty cash fund will include: Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $120,500 and sales of $1,005,000. If uncollectible accounts are estimated to be 0.8% of sales, what is the amount of the bad debts expense adjusting entry? The custodian of a $570 petty cash fund discovers that the fund has $102.50 in coins and currency plus $454.50 in receipts at the end of the month. The entry to replenish the petty cash fund will include: Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $120,500 and sales of $1,005,000. If uncollectible accounts are estimated to be 0.8% of sales, what is the amount of the bad debts expense adjusting entry?

Answer rating: 100% (QA)

A a A debit to Petty Cash for 102 50 b A debit to Accounts Rece ivable for 454 50 c A credit to C... View the full answer