Accounts Receivable Allowance for Doubtful Accounts Sales Revenue (all on credit) Dr. (a) $113,400 No. Account Titles and Explanation (b) 2,205 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 and (b) 5% of gross accounts receivable and Allowance for Doubtful Accounts has a $2,055 credit balance. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) 4 Cr. $856,800 Debit Credit Accounts Receivable Allowance for Doubtful Accounts Sales Revenue (all on credit) Dr. $113,400 2,205 No. Account Titles and Explanation (a) 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 and (b) 5% of gross accounts receivable and Allowance for Doubtful Accounts has a $2.055 credit balance. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually) A (b) Cr. $856,800 Debit Credit
Accounts Receivable Allowance for Doubtful Accounts Sales Revenue (all on credit) Dr. (a) $113,400 No. Account Titles and Explanation (b) 2,205 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 and (b) 5% of gross accounts receivable and Allowance for Doubtful Accounts has a $2,055 credit balance. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) 4 Cr. $856,800 Debit Credit Accounts Receivable Allowance for Doubtful Accounts Sales Revenue (all on credit) Dr. $113,400 2,205 No. Account Titles and Explanation (a) 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 and (b) 5% of gross accounts receivable and Allowance for Doubtful Accounts has a $2.055 credit balance. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually) A (b) Cr. $856,800 Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
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.
Question
A
Transcribed Image Text:Accounts Receivable Allowance for Doubtful Accounts Sales Revenue (all on credit) Dr. (a) $113,400 No. Account Titles and Explanation (b) 2,205 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 and (b) 5% of gross accounts receivable and Allowance for Doubtful Accounts has a $2,055
credit balance. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent
manually.) 4 Cr. $856,800 Debit Credit
Accounts Receivable
Allowance for Doubtful Accounts
Sales Revenue (all on credit)
Dr.
$113,400
(b)
No. Account Titles and Explanation
(a)
2,205
Cr.
$856,800
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 and (b) 5% of gross accounts receivable and Allowance for Doubtful Accounts has a $2,055 credit balance. (If no
entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically
indented when the amount is entered. Do not indent manually.)
•
c
Debit
Credit
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