Haresh On December 31, 2020, Corotel Company's year-end, the unadjusted trial balance included the following items:AccountAccounts receivableAllowance for doubtfulaccountsSales ($2,790,000 cash sales)View transaction listRequired:1. Prepare the adjusting entry needed in Corotel's books to recognize bad debts under each of the following independentassumptions.Debit$2,090,00032,000a. Bad debts are estimated to be 2% of credit sales.b. An analysis suggests that 5% of outstanding accounts receivable on December 31, 2020, will become uncollectible.Journal entry worksheet12Note: Enter debits before credits.TransactionDec 31Record the estimate for uncollectible accounts.Credit$11,160,000General JournalBad debt expenseAllowance for doubtful accountsDebit223,200Credit223,200

There is always a risk of uncollectibility when goods are sold on credit without any security.The…

On December 31, 2020, Corotel Company's year-end, the unadjusted trial balance included the following items: Account Accounts receivable Allowance for doubtful accounts Sales ($2,790,000 cash sales) View transaction list Debit $2,090,000 32,000 Required: 1. Prepare the adjusting entry needed in Corotel's books to recognize bad debts under each of the following independent assumptions. a. Bad debts are estimated to be 2% of credit sales. b. An analysis suggests that 5% of outstanding accounts receivable on December 31, 2020, will become uncollectible. Journal entry worksheet 1 Note: Enter debits before credits. Transaction Dec 31 Record the estimate for uncollectible accounts. Credit $11,160,000 General Journal Bad debt expense Allowance for doubtful accounts Debit Credit 223,200 223,200