The trial balance before adjustment of Taylor Swift 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 receivable and Allowance for Doubtful Accounts has a $1,700 credit balance.

Transcribed Image Text:

Dr Cr. $90,000 Accounts Receivable Allowance for Doubtful Accounts Sales Revenue (all on credit) 1,750 680,000