Bad debt expense is estimated using the percentage-of-accounts-receivable method. Total sales for the year were $600,000. The

Question:

Bad debt expense is estimated using the percentage-of-accounts-receivable method. Total sales for the year were $600,000. The ending balance in Accounts Receivable was $200,000. An examination of the outstanding accounts at the end of the year indicates that approximately 14% of these accounts will ultimately prove to be uncollectible. Before any adjustment, the balance in Allowance for Bad Debts is $900 (credit). Total accounts written off as uncollectible during the year were $16,600. Make the necessary summary journal entries to record this bad debt-related information.

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...