At each calendar year end, Mazie Supply Co uses the percent of accounts receivable method to estimate bad debts On December 31, 2017, it has outstanding accounts receivable of $55,000, and it estimates that 2 will be uncollectible Prepare the adjusting entry to record bad debts expense for year 201...

a Dec 31 Bad Debts Expense 685 Allowance for Doubtful Accounts 685 Record estimated b ...

At each calendar year-end, Mazie Supply Co. uses the percent of accounts receivable method to estimate bad

Question:

At each calendar year-end, Mazie Supply Co. uses the percent of method to estimate bad debts. On December 31, 2017, it has outstanding of $55,000, and it estimates that 2% will be uncollectible.
Prepare the adjusting entry to record bad debts expense for year 2017 under the assumption that the Allowance for Doubtful Accounts has
(a) A $415 credit balance before the adjustment
(b) A $291 debit balance before the adjustment.
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...