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Problem #1 Percent of sales method [Debit Balance] - At the end of the current...

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Accounting

Problem #1 Percent of sales method [Debit Balance] - At the end of the current year, Accounts Receivable has a balance of $1,690,000; Allowance for Doubtful Accounts has a debit balance of $8,700; and Net Sales for the year total $3,500,000. Bad Debt Expense is estimated at of 1% of Net Sales. 1) Calculate the dollar amount required to record the allowance amount. Date 2) Prepare the adjusting journal entry for the Allowance for Doubtful Accounts: Accounts Dr 1 Cr 3) Calculate the Net Accounts Receivable Balance [Calculations must include words & numbers]
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Problem \#1 - Percent of sales method [Debit Balance] At the end of the current year, Accounts Receivable has a balance of $1,690,000; Allowance for Doubtful Accounts has a debit balance of $8,700; and Net Sales for the year total $3,500,000. Bad Debt Expense is estimated at 21 of 1% of Net Sales. 1) Calculate the dollar amount required to record the allowance amount. 2) Prepare the adjusting journal entry for the Allowance for Doubtful Accounts: 3) Calculate the Net Accounts Receivable Balance [Calculations must include words \& numbers]

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