Splitter Corporation had total sales in the current year of $750,000 and credit sales of $650,000 The Accounts Receivable balance was $450,000 on the balance sheet date and the Allowance for doubtful Accounts had a credit balance of $10,000 before adjusting entries Bad debt expense is estimated as ...

Splitter Corporation had total sales in the current year of $750,000 and credit sales of $650,000. The

Question:

Splitter had total sales in the current year of $750,000 and credit sales of $650,000. The balance was $450,000 on the date and the Allowance for doubtful Accounts had a credit balance of $10,000 before adjusting entries. Bad debt expense is estimated as 2% of credit sales.
The adjusting entry to record estimated had debt expense would include a
A. $3,000 debit to Bad Debt Expense
B. $13,000 debit to Bad Debt Expense
C. $13,000 credit to Bad Debt Expense
D. $3,000 credit to 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... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...