Oriole Company uses the percentage-of-receivables basis to record bad debt expense and concludes that 2% of accounts receivablewill become uncollectible. Accounts receivable are $ 620,000 at the end of the year, and the allowance for doubtful accounts has acredit balance of $ 3,320.(a)V Your answer is correctPrepare the adjusting journal entry to record bad debt expense for the year. (Credit account titles are automatically indented whenamount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)Account Titles and ExplanationDebitCreditBad Debt Expense9080Allowance for Doubtful Accounts9080eTextbook and MediaList of AccountsAttempts: 2 of 3 used(b)Your answer is partially correct.If the allowance for doubtful accounts had a debit balance of $ 800 instead of a credit balance of $ 3,320, prepare the adjustingjournal entry for bad debt expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Ifno entry is required, select "No Entry" for the account titles and enter O for the amounts.)Account Titles and ExplanationDebitCreditBad Debt Expense11600Allowance for Doubtful Accounts11600DELL

If there is a debit balance in the allowance for doubtful accounts, its balance is added to the bad…

Oriole Company uses the percentage-of-receivables basis to record bad debt expense and concludes that 2% of accounts receivable will become uncollectible. Accounts receivable are $ 620,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $ 3,320.

Oriole Company uses the percentage-of-receivables basis to record bad debt expense and concludes that 2% of accounts receivable will become uncollectible. Accounts receivable are $ 620,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $ 3,320.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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