Splish Brothers Co. uses the percentage-of-receivables basis to record bad debt expense and concludes that 3% of accounts receivable will become uncollectible. Accounts receivable are $402,700 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,897. (a) (b) (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Prepare the adjusting journal entry to record bad debt expense for the year. If the allowance for doubtful accounts had a debit balance of $989 instead of a credit balance of $2,897, prepare the adjusting journal entry for bad debt expense. No. Account Titles and Explanation (a) (b) Bad Debt Expense Allowance for Doubtful Accounts Bad Debt Expense Allowance for Doubtful Accounts Debit Credit
Splish Brothers Co. uses the percentage-of-receivables basis to record bad debt expense and concludes that 3% of accounts receivable will become uncollectible. Accounts receivable are $402,700 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,897. (a) (b) (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Prepare the adjusting journal entry to record bad debt expense for the year. If the allowance for doubtful accounts had a debit balance of $989 instead of a credit balance of $2,897, prepare the adjusting journal entry for bad debt expense. No. Account Titles and Explanation (a) (b) Bad Debt Expense Allowance for Doubtful Accounts Bad Debt Expense Allowance for Doubtful Accounts Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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.
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![Splish Brothers Co. uses the percentage-of-receivables basis to record bad debt expense and concludes that 3% of accounts receivable
will become uncollectible. Accounts receivable are $402,700 at the end of the year, and the allowance for doubtful accounts has a
credit balance of $2,897.
(a)
(b)
(List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If
no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
No.
(a)
Prepare the adjusting journal entry to record bad debt expense for the year.
If the allowance for doubtful accounts had a debit balance of $989 instead of a credit balance of $2,897, prepare the
adjusting journal entry for bad debt expense.
(b)
Account Titles and Explanation
Bad Debt Expense
Allowance for Doubtful Accounts
Bad Debt Expense
Allowance for Doubtful Accounts
Debit
Credit
][](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa0f9ef8d-f75d-48ec-b554-264b1d543da9%2F47227fc9-dad2-4970-a397-a928df0abf75%2F02drv3_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Splish Brothers Co. uses the percentage-of-receivables basis to record bad debt expense and concludes that 3% of accounts receivable
will become uncollectible. Accounts receivable are $402,700 at the end of the year, and the allowance for doubtful accounts has a
credit balance of $2,897.
(a)
(b)
(List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If
no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
No.
(a)
Prepare the adjusting journal entry to record bad debt expense for the year.
If the allowance for doubtful accounts had a debit balance of $989 instead of a credit balance of $2,897, prepare the
adjusting journal entry for bad debt expense.
(b)
Account Titles and Explanation
Bad Debt Expense
Allowance for Doubtful Accounts
Bad Debt Expense
Allowance for Doubtful Accounts
Debit
Credit
][
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