1. At December 31 of the current year, a company reported the following: Total sales for the current year: $780,000 includes $160,000 in cash sales Accounts receivable balance at Dec.31, end of current year: $190,000 Allowance for Doubtful Accounts balance at January 1, beginning of current year: S 8,300 Bad debt written off during the current year: $6800. Prepare the necessary adjusting entries to record bad debts expense assuming this company's bad debt are estimated to equal: (a) 1.5% of credit sales. (b) 5% of accounts receivable.

1. At December 31 of the current year, a company reported the following: Total sales for the current year: $780,000 includes $160,000 in cash sales Accounts receivable balance at Dec.31, end of current year: $190,000 Allowance for Doubtful Accounts balance at January 1, beginning of current year: S 8,300 Bad debt written off during the current year: $6800. Prepare the necessary adjusting entries to record bad debts expense assuming this company's bad debt are estimated to equal: (a) 1.5% of credit sales. (b) 5% of accounts receivable.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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