Mazie Supply Company uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $61,500, and it estimates that 4% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has: (a) a $1,046 credit balance before the adjustment. (b) a $308 debit balance before the adjustment. View transaction list Journal entry worksheet 1 2 Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has a $1,046 credit balance before the adjustment.
Mazie Supply Company uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $61,500, and it estimates that 4% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has: (a) a $1,046 credit balance before the adjustment. (b) a $308 debit balance before the adjustment. View transaction list Journal entry worksheet 1 2 Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has a $1,046 credit balance before the adjustment.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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.
Question
pap.7
Transcribed Image Text:s
Mazie Supply Company uses the percent of accounts receivable method. On December 31, it has outstanding accounts
receivable of $61,500, and it estimates that 4% will be uncollectible.
Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for
Doubtful Accounts has:
(a) a $1,046 credit balance before the adjustment.
(b) a $308 debit balance before the adjustment.
View transaction list
Journal entry worksheet
2
<
Prepare the year-end adjusting entry to record bad debts expense under the
assumption that the Allowance for Doubtful Accounts has a $1,046 credit
balance before the adjustment.
Note: Enter debits before credits.
Transcribed Image Text:<
2
Prepare the year-end adjusting entry to record bad debts expense under the
assumption that the Allowance for Doubtful Accounts has a $308 debit balance
before the adjustment.
Note: Enter debits before credits.
Transaction
(b)
General Journal
Debit
Credit
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