Your company estimates that 5% of this month's $100,000 Sales on account will eventually be written off. The entry should be: Debit Bad Debt Expense, $5,000; Credit Bad Debt Allowance, $5,000 Debit Sales, $5,000; Credit Bad Debt Allowance, $5,000 Debit Accounts Receivable, $95,000; Credit Sales, $95,000 No entry needed at this time.

Answer rating: 100% (QA)

The entry that should be made for the companys estimate that 5 of this m... View the full answer