5) Based on the information: Credit sales 1,720,000 Collections on accounts receivable during the year 1,700,000 Cash sales 8,100,000 Unadjusted balance in Allowance for doubtful accounts Sales returns and allowances for credit sales 500 debit 40,000 Accounts receivable, beginning of the year 140,000 If bad debts are estimated to be 1% of ending accounts receivable, in the adjusting entry to recognize bad debts, you would debit bad debt expense for: A 2,300 B. 1,900 c. 1,300 D. 1,800

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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5) Based on the information:
Credit sales
1,720,000
Collections on accounts receivable during the year
1,700,000
8,100,000
Cash sales
Unadjusted balance in Allowance for doubtful accounts
500 debit
Sales returns and allowances for credit sales
40,000
Accounts receivable, beginning of the year
140,000
If bad debts are estimated to be 12 of ending accounts receivable, in the adjusting entry to recognize bad
debts, you would debit bad debt expense for:
A.
2,300
В.
1.900
C.
1,300
D.
1.800
Transcribed Image Text:5) Based on the information: Credit sales 1,720,000 Collections on accounts receivable during the year 1,700,000 8,100,000 Cash sales Unadjusted balance in Allowance for doubtful accounts 500 debit Sales returns and allowances for credit sales 40,000 Accounts receivable, beginning of the year 140,000 If bad debts are estimated to be 12 of ending accounts receivable, in the adjusting entry to recognize bad debts, you would debit bad debt expense for: A. 2,300 В. 1.900 C. 1,300 D. 1.800
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