Current Attempt in Progress A trial balance before adjustment included the following: Debit Credit Accounts receivable $114,000 Allowance for doubtful accounts S900 Sales 694,000 Sales returns and allowances 6,800 Prepare journal entries assuming that the estimate of uncollectible is determined by taking (1) 8% of gross accounts receivable (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (2) 4% of gross accounts receivable (assuming a $900 debit allowance account balance). (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
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.
![Current Attempt in Progress
A trial balance before adjustment included the following:
Debit
Credit
Accounts receivable
$114,000
Allowance for doubtful accounts
$900
Sales
694,000
Sales returns and allowances
6,800
Prepare journal entries assuming that the estimate of uncollectible is determined by taking
(1) 8% of gross accounts receivable (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Account Titles and Explanation
Debit
Credit
(2) 4% of gross accounts receivable (assuming a $900 debit allowance account balance). (Credit account titles are automatically
indented when the amount is entered. Do not indent manually.)
Account Titles and Explanation
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F79fe748f-2169-43eb-94ba-fc8e6b626f1b%2F98aef882-3966-4219-bb6a-4fad4ab1a933%2F7xli8c_processed.png&w=3840&q=75)
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