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

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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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.
Transcribed Image Text: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.
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
Transcribed Image Text: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
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