Bad debt expense is estimated using the percentage-of-sales method. Total sales for the year were $500,000. The

Question:

Bad debt expense is estimated using the percentage-of-sales method. Total sales for the year were $500,000. The ending balance in Accounts Receivable was $100,000. Historically, bad debts have been 3% of total sales. The economic circumstances of credit customers this year are about the same as they have been in past years. Total accounts written off as uncollectible during the year were $13,700. 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...