Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $1,228,000 and sales for the year total $13,930,000. The allowance account before adjustment has a credit balance of $16,600. Bad debt expense is estimated at 1/2 of 1% of sales. The allowance account before adjustment has a credit balance of $16,600. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $53,100. The allowance account before adjustment has a debit balance of $5,500. Bad debt expense is estimated at 1/4 of 1% of sales. The allowance account before adjustment has a debit balance of $5,500. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $45,700. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above. a. $fill in the blank 1 b. $fill in the blank 2 c. $fill in the blank 3 d. $fill in the blank 4

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Providing for Doubtful Accounts

At the end of the current year, the accounts receivable account has a debit balance of $1,228,000 and sales for the year total $13,930,000.

  1. The allowance account before adjustment has a credit balance of $16,600. Bad debt expense is estimated at 1/2 of 1% of sales.
  2. The allowance account before adjustment has a credit balance of $16,600. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $53,100.
  3. The allowance account before adjustment has a debit balance of $5,500. Bad debt expense is estimated at 1/4 of 1% of sales.
  4. The allowance account before adjustment has a debit balance of $5,500. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $45,700.

Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above.

a. $fill in the blank 1
b. $fill in the blank 2
c. $fill in the blank 3
d. $fill in the blank 4
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