Question: Entries for bad debt expense. The trial balance before adjustment of Risen Company reports the following balances: Dr. Cr. Accounts receivable €100,000 Allowance for doubtful accounts € 2,500 Sales (all on credit) 750,000 Sales returns and allowances 40,000 Instructions (a) Prepare the entry for estimated bad debts assuming that doubtful accounts are estimated to be 6% of gross accounts receivable. (b) Assume that all the information above is the same, except that the Allowance for Doubtful Accounts has a debit balance of €2,500 instead of a credit balance. How will this difference affect the journal entry in part (a)?
Question:
Entries for bad debt expense.
The
Dr. Cr.
Accounts receivable €100,000
Allowance for doubtful accounts € 2,500
Sales (all on credit) 750,000
Sales returns and allowances 40,000
Instructions
(a) Prepare the entry for estimated
(b) Assume that all the information above is the same, except that the Allowance for Doubtful Accounts has a debit balance of €2,500 instead of a credit balance. How will this difference affect the
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