Exercise 7-9 Estimating bad debts LO P2 At December 31, Folgeys Coffee Company reports the...
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Exercise 7-9 Estimating bad debts LO P2 At December 31, Folgeys Coffee Company reports the following results for its calendar year. Cash sales Credit sales $ 903,000 303,000 Its year-end unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $ 128,000 debit 5,300 debit Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (a) 6% of credit sales, (b) 4% of total sales and (c) 9% of year-end accounts receivable. View transaction list Journal entry worksheet 1 2 3 Record Bad Debts Expense assuming uncollectibles are estimated to be 6% of credit sales. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal 1 Record Bad Debts Expense assuming uncollectibles are estimated to be 6% of credit sales. 2 Record Bad Debts Expense assuming uncollectibles are estimated to be 4% of total sales. 3 Record Bad Debts Expense assuming uncollectibles are estimated to be 9% of year-end accounts receivable
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