The following are the selected balances which have been taken from the unadjusted trial balance of...
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The following are the selected balances which have been taken from the unadjusted trial balance of a trading company for the year ended Dec. 31, 2020: Accounts Receivable Allowance for Bad Debt (Debit Balance) Sales (All on credit) Sales Return and Allowance Rs. 400,000 5,000 800,000 25,000 Required: a. Record and close bad debt expense for the year ended Dec. 31, 2020 assuming that allowance for bad debt was estimated @ 5% of Accounts Receivable. b. Record and close bad debt expense for the year ended Dec. 31, 2020 assuming that bad debt expense was estimated @ 1% of net credit sales. The following are the selected balances which have been taken from the unadjusted trial balance of a trading company for the year ended Dec. 31, 2020: Accounts Receivable Allowance for Bad Debt (Debit Balance) Sales (All on credit) Sales Return and Allowance Rs. 400,000 5,000 800,000 25,000 Required: a. Record and close bad debt expense for the year ended Dec. 31, 2020 assuming that allowance for bad debt was estimated @ 5% of Accounts Receivable. b. Record and close bad debt expense for the year ended Dec. 31, 2020 assuming that bad debt expense was estimated @ 1% of net credit sales.
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Answer a Bad Debt Expense Rs 20000 Allowance for Bad Debt Rs 25000 Jou... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
Posted Date:
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