Refer to the information in Exercise 7-5 to complete the following requirements. a. Estimate the balance of

Question:

Refer to the information in Exercise 7-5 to complete the following requirements.
a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 2% of total to estimate uncollectibles, instead of the aging of receivables method.
b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $300 debit.
c. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $200 credit.
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...