Your answer is partially correct. Try again. Concord Company reports the following financial information before adjustments. Dr. Cr. Accounts Receivable $153,000 Allowance for Doubtful Accounts $3,030 Sales Revenue (all on credit) 834,500 Sales Returns and Allowances 50,540 Prepare the journal entry to record bad debt expense assuming Concord Company estimates bad debts at (a) 5% of accounts receivable and (b) 5% of accounts receivable but Allowance for Doubtful Accounts had a $1,540 debit balance. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount i
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.
| Your answer is partially correct. Try again. | |
|
Dr.
|
Cr.
|
|||||
| $153,000 | ||||||
| Allowance for Doubtful Accounts | $3,030 | |||||
| Sales Revenue (all on credit) | 834,500 | |||||
| Sales Returns and Allowances | 50,540 |
Prepare the
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
