The following information was reported in Nenshi Company's general ledger at September 30:

All sales were made on account. Bad debt expense is estimated to be 1% of sales.
Instructions
Determine the missing amounts in Nenshi Company's accounts. State what each of these amounts represents. You will not be able to determine the missing items in alphabetical order. (To solve this problem, it might help if you reconstruct the journal entries.)
Taking It Further
Explain the differences between bad debt expense and the allowance for doubtful accounts.

Transcribed Image Text:

Accounts Receivable Sales 5,370,000 Beg. bal. 845,000 4,200 End. bal. 927,500 Allowance for Doubtful Accounts Bad Debt Expense Beg. bal. 76,050 50,400 End. b 83,550