Blue, Inc. had net sales in 2025 of $1,447,100. At December 31, 2025, before adjusting entries, the balances in selected accounts were Accounts Receivable $351,700 debit, and Allowance for Doubtful Accounts $2,660 credit. If Blue estimates that 7% of its receivables will prove to be uncollectible. Prepare the December 31, 2025, journal 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. List debit entry before credit entry.) Date Dec. 31, 2025 Account Titles and Explanation Bad Debt Expense Allowance for Doubtful Accounts Debit 27279 Credit 27279
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.
![Blue, Inc. had net sales in 2025 of $1,447,100. At December 31, 2025, before adjusting entries, the balances in selected accounts were
Accounts Receivable $351,700 debit, and Allowance for Doubtful Accounts $2,660 credit. If Blue estimates that 7% of its receivables
will prove to be uncollectible.
Prepare the December 31, 2025, journal 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. List debit
entry before credit entry.)
Date
Dec. 31,
2025
Account Titles and Explanation
Bad Debt Expense
Allowance for Doubtful Accounts
eTextbook and Media
Debit
27279
Credit
27279](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3d9602e9-03f0-42a3-a04c-0f97d79415ca%2Fa112087a-fa9a-42a1-a973-f24865e97ad7%2Fflsugi_processed.jpeg&w=3840&q=75)
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