Qinshan estimates that 4% of total accounts receivable will become uncollectible. Accounts receivable at December 31, 2014,

Question:

Qinshan estimates that 4% of total will become uncollectible. at December 31, 2014, are $250,000.
(a) Determine the required balance in the allowance for doubtful accounts and the net realizable value of the The allowance for doubtful accounts has an unadjusted debit balance of $1,500 at December 31, 2014. Prepare the adjusting entry to record bad debt expense in 2014.
(c) Assume instead that the allowance has an unadjusted credit balance of $500 at December 31, 2014. Prepare the adjusting entry to record bad debt 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...