### Trial Balance Before Adjustment for Saturn CorpThe trial balance before adjustment of Saturn Corp shows the following balances:| | Dr. | Cr. ||----------------|---------|----------|| Accounts Receivable | P97,400 | || Allowance for Doubtful Accounts | | 3,300 || Sales Revenue (all on credit) | | P643,200 |### Instructions for Estimating Bad DebtsGive the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of:1. **4% of gross accounts receivable** 2. **5% of gross accounts receivable if the Allowance for Doubtful Accounts has a P1,857 credit balance**

Allowance for doubtful accounts can be computed by adding percentage of accounts receivables with…

The trial balance before adjustment of saturn corp shows the following balances. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue (all on credit) Dr. P97,400 3,300 Cr. P643,200 Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% of gross accounts receivable and (b) 5% of gross accounts receivable and Allowance for Doubtful Accounts has a P1,857 credit balance.

The trial balance before adjustment of saturn corp shows the following balances. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue (all on credit) Dr. P97,400 3,300 Cr. P643,200 Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% of gross accounts receivable and (b) 5% of gross accounts receivable and Allowance for Doubtful Accounts has a P1,857 credit balance.

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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The trial balance before adjustment of saturn corp shows the following balances. Dr. P97,400 3,300 Cr. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue (all on credit) Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% of gross accounts receivable and (b) 5% of gross accounts receivable and Allowance for Doubtful Accounts has a P1,857 credit balance. P643,200
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hi Can you assist me in undertanding better how you calculated the written off amount ? Why is the formula addind the opening and closing balance of the allowance for doubtful accounts and substract the allowance estimated ? You mentionned the bad debt was equal to total estimated allowance for doubtful accounts- balance in allowance for doubtful account . Is this the same formula to use for the write off ? Many thanks
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