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Please answer the following The following unadjusted balances of Echo Company are presented at September 30, 2023:   Dr. Cr. Accounts receivable $100 000   Sales returns and allowances 40 000   Allowance for doubtful accounts   $    2 500 Credit Sales   750 000

Please answer the following The following unadjusted balances of Echo Company are presented at September 30, 2023:   Dr. Cr. Accounts receivable $100 000   Sales returns and allowances 40 000   Allowance for doubtful accounts   $    2 500 Credit Sales   750 000

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 6MC: Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts...
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Please answer the following

The following unadjusted balances of Echo Company are presented at September 30, 2023:

 

Dr.

Cr.

Accounts receivable

$100 000

 

Sales returns and allowances

40 000

 

Allowance for doubtful accounts

 

$    2 500

Credit Sales

 

750 000

 

 

Required:

(a)  Prepare the journal entry for estimated bad debts assuming that doubtful accounts are estimated to be 6% of gross accounts receivable.

Dr. 

$

 

     Cr.  

 

$

           

(b)  Prepare the journal entry for estimated bad debts assuming that doubtful accounts are estimated to be 1% of net sales

Dr. 

$

 

     Cr.  

 

$
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