repare the adjusting entry to record estimated bad debts expense using the percentage of receivables basis under each of the following independent assumptions: -Allowance for Doubtful Accounts has a credit balance of $2,300 before adjustment -Allowance for Doubtful Accounts has a debit balance of $600 before adjustment -Using the percentage of sales method 1% of sales is expected to be uncollectible. Prepare the adjusting entry under each of the following independent assumptions using the percent of sales method: -Allowance for Doubtful Accounts has a credit balance of $2,300 before adjustment. -Allowance for Doubtful Accounts has a debit balance of $600 before adjustment
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.
George Products had sales of $13,000,000 for 2014. On December 31, 2014, the balance in
Prepare the
-Allowance for Doubtful Accounts has a credit balance of $2,300 before adjustment
-Allowance for Doubtful Accounts has a debit balance of $600 before adjustment
-Using the percentage of sales method 1% of sales is expected to be uncollectible. Prepare the adjusting entry under each of the following independent assumptions using the percent of sales method:
-Allowance for Doubtful Accounts has a credit balance of $2,300 before adjustment.
-Allowance for Doubtful Accounts has a debit balance of $600 before adjustment
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