a) Your company records bad debt expense throughout the year based on credit sales, which...
50.1K
Verified Solution
Link Copied!
Question
Accounting
a) Your company records bad debt expense throughout the year based on credit sales, which it estimates to be 1.5% of credit sales. The company then makes an adjustment at year end using the balance sheet approach. Total sales were $6 million ($3 million were credit sales). Record the journal entry for bad debt expense using the income statement approach:
b) In addition, your company wrote off $36,000 of accounts receivable during the year. Record the journal entry to write off these accounts receivable:
c) At year end, the company anticipates that $37,000 of accounts receivable will be uncollectible based on an aging schedule. The beginning balance of allowance for bad debts (before your entries above) was $25,000 and the company did not write off any accounts receivable during the year. Record the appropriate adjusting entry:
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
