Brief Exercise 9-06 a-b Sunland Co. uses the percentage-of-receivables basis to record bad debt expense. It estimates that 2% of accounts receivable will become uncollectible. Accounts receivable are $620,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,02 Prepare the adjusting Journal entry to record bad debt expense for the year. (Credit account titles are automatically indented when amount entered. Do not indent manually.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS If the allowance for doubtful accounts had a debit balance of $800 instead of a credit balance of $2,020, determine the amount to be reported for bad debt expense. Bad Debts Expense
Brief Exercise 9-06 a-b Sunland Co. uses the percentage-of-receivables basis to record bad debt expense. It estimates that 2% of accounts receivable will become uncollectible. Accounts receivable are $620,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,02 Prepare the adjusting Journal entry to record bad debt expense for the year. (Credit account titles are automatically indented when amount entered. Do not indent manually.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS If the allowance for doubtful accounts had a debit balance of $800 instead of a credit balance of $2,020, determine the amount to be reported for bad debt expense. Bad Debts Expense
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Brief Exercise 9-06 a-b
Sunland Co. uses the percentage-of-receivables basis to record bad debt expense. It estimates that 2% of accounts receivable will become uncollectible. Accounts receivable are $620,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,020.
Prepare the adjusting journal entry to record bad debt expense for the year. (Credit account titles are automatically indented when amount
entered. Do not indent manually.)
Account Titles and Explanation
Debit
Credit
SHOW LIST OF ACCOUNTS
If the allowance for doubtful accounts had a debit balance of $800 instead of a credit balance of $2,020, determine the amount to be reported for bad debt expense.
Bad Debts Expense
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