Question: Paul Anchor, Incorporated estimated that bad debt expense would equal 4% of the ending balance of accounts receivable for the current year. This years ending
Paul Anchor, Incorporated estimated that bad debt expense would equal 4% of the ending balance of accounts receivable for the current year. This year’s ending balance of accounts receivable amounted to $ 2,500,000. There was a $ 69,000 credit balance in the allowance for uncollectible accounts prior to the year- end adjustment. Prepare the adjusting journal entry to record the bad debt provision for the current year.
Step by Step Solution
3.39 Rating (165 Votes )
There are 3 Steps involved in it
Description Amount Ending accounts receivable balance 2500000 ... View full answer
Get step-by-step solutions from verified subject matter experts
Document Format (1 attachment)
578-B-A-L (6246).docx
120 KBs Word File
