E7.9 (LO3) (Computing Bad Debts and Preparing Journal Entries) The trial balance before ad- justment of Estefan Inc. shows the following balances. Dr. Cr. Accounts Receivable $80,000 Allowance for Doubtful Accounts 1,750 Sales Revenue (net, all on credit) $580,000 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 receivables and allowance for Doubtful accounts has a $1,700 credit balance.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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