E7.9 (LO 3) (Computing Bad Debts and Preparing Journal Entries) The trial balance before adjustment of Taylor Swift Inc. shows the following balances. Dr. Cr. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue (all on credit) $90,000 1750 $680,000 Instructions 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 $1.700 cred balance.
E7.9 (LO 3) (Computing Bad Debts and Preparing Journal Entries) The trial balance before adjustment of Taylor Swift Inc. shows the following balances. Dr. Cr. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue (all on credit) $90,000 1750 $680,000 Instructions 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 $1.700 cred balance.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:E7.9 (LO 3) (Computing Bad Debts and Preparing Journal Entries) The trial balance before adjustment of Taylor Swift
Inc. shows the following balances.
Dr.
Cr.
Accounts Receivable
Allowance for Doubtful Accounts
Sales Revenue (all on credit)
$90,000
1750
$680,000
Instructions
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 $1.700 cred
balance.
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