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The trial balance before adjustment of Teal Mountain Inc. shows the following balances:

		Dr.		Cr.
Accounts receivable		$108,900
Allowance for doubtful accounts		1,965
Sales revenue (all on credit)				$695,000
Sales returns and allowances		28,000

Give the entry for bad debt expense for the current year assuming the allowance should be 4% of gross accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount

eTextbook and Media

List of Accounts

Give the entry for bad debt expense for the current year assuming historical records show that, based on accounts receivable aging, the following percentages will not be collected: (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

		Balance		Percentage Estimated to Be Uncollectible
030 days outstanding		$36,800		1%
3160 days outstanding		49,000		5%
6190 days outstanding		14,000		12%
Over 90 days outstanding		9,100		18%

Account Titles and Explanation	Debit	Credit
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount

eTextbook and Media

List of Accounts

Give the entry for bad debt expense for the current year assuming allowance for doubtful accounts is $1,965 but it is a credit balance and the allowance should be 4% of gross accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount

eTextbook and Media

List of Accounts

Give the entry for bad debt expense for the current year assuming allowance for doubtful accounts is $1,965 but it is a credit balance and historical records show that the following percentages will not be collected: (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

		Balance		Percentage Estimated to Be Uncollectible
030 days outstanding		$36,800		1%
3160 days outstanding		49,000		5%
6190 days outstanding		14,000		12%
Over 90 days outstanding		9,100		18%

Account Titles and Explanation	Debit	Credit
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount

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