The trial balance before adjustment of Estefan Inc. shows the following balances.

Instructions
Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of
(a) 4% of gross accounts receivable
(b) 5% of gross, accounts receivables and allowance for Doubtful accounts has a $1,700 credit balance.

Transcribed Image Text:

Dr. Cr. Accounts Receivable $80,000 Allowance for Doubtful Accounts 1,750 Sales Revenue (net, all on credit) $580,000