Birch Company had credit sales of $220,000 during 2015. The balance in Allowance for Doubtful Accounts is

Question:

Birch Company had credit sales of $220,000 during 2015. The balance in Allowance for Doubtful Accounts is a $1,010 debit balance. Journalize the Bad Debts Expense for December 31 using each of the following methods:
a. Bad Debts Expense is estimated at 2% of credit sales.
b. The aging of indicates that $2,600 will be required in the Allowance account to cover Bad Debts Expense.
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...