Blossom, Inc. had net sales in 2020 of $1,506,100. At December 31, 2020, before adjusting entries, the balances in selected accounts were Accounts Receivable $254,000 debit, and Allowance for Doubtful Accounts $2,520 credit. Assume Blossom prepares an aging schedule that estimates total uncollectible accounts at $34,000. Prepare the entry to record bad debt expense. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Dec. 31, 2020 Account Titles and Explanation Debit Credit
Blossom, Inc. had net sales in 2020 of $1,506,100. At December 31, 2020, before adjusting entries, the balances in selected accounts were Accounts Receivable $254,000 debit, and Allowance for Doubtful Accounts $2,520 credit. Assume Blossom prepares an aging schedule that estimates total uncollectible accounts at $34,000. Prepare the entry to record bad debt expense. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Dec. 31, 2020 Account Titles and Explanation Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
10
Transcribed Image Text:Blossom, Inc. had net sales in 2020 of $1,506,100. At December 31, 2020, before adjusting entries, the balances in selected
accounts were Accounts Receivable $254,000 debit, and Allowance for Doubtful Accounts $2,520 credit. Assume Blossom
prepares an aging schedule that estimates total uncollectible accounts at $34,000. Prepare the entry to record bad debt expense.
(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.)
Date
Dec. 31,
2020
Account Titles and Explanation
Debit
Credit
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