Prepare the entry to record bad debt expense for the period. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Bad Debt Expense Allowance for Doubtful Accounts
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.
![Assume the following information for Larkspur Corp.
Accounts receivable (beginning balance)
$139,000
Allowance for doubtful accounts (beginning balance)
11,480
Net credit sales
950,000
Collections
915,000
Write-offs of accounts receivable
5,500
Collections of accounts previously written off
2,200
Uncollectible accounts are expected to be 6% of the ending balance in accounts receivable.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fada4cab0-d82f-4f36-a673-3806d4f2249e%2Fbba63b40-5fb7-4518-a44e-0321266ada1e%2Fkyyiu6_processed.png&w=3840&q=75)
![Prepare the entry to record bad debt expense for the period. (Credit account titles are automatically indented when the amount is
entered. Do not indent manually.)
Account Titles and Explanation
Debit
Credit
Bad Debt Expense
Allowance for Doubtful Accounts](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fada4cab0-d82f-4f36-a673-3806d4f2249e%2Fbba63b40-5fb7-4518-a44e-0321266ada1e%2Four82dh_processed.png&w=3840&q=75)
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