A trial balance before adjustments included the following: Accounts receivable Allowance for expected credit losses Sales Sales returns and allowances (a) Account Titles eTextbook and Media List of Accounts Debit Save for Later $134,400 Prepare an adjusting entry assuming that the estimate of uncollectible accounts is determined by taking 5% of gross accounts receivable. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) 9,600 Credit $740 571,200 Debit Credit Attempts: 0 of 3 used Submit Answer

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Bad Debts

At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.  

Accounts Receivable

The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.