1)

Jefferson uses the percent of sales method of estimating uncollectible expenses. Based on past history, 2% of credit sales are expected to be uncollectible. Sales for the current year are $5,550,000. Which of the following is correct regarding the entry to record estimated uncollectible receivables?

a.Allowance for Doubtful Accounts will be credited.

b.Cash will be debited.

c.Accounts Receivable will be debited.

d.Bad Debt Expense will be credited.

2)

Allowance for Doubtful Accounts has a debit balance of $2,300 at the end of the year (before adjustment). The company prepares an analysis of customers' accounts and estimates the amount of uncollectible accounts to be $31,900. Which of the following adjusting entries is needed to record the Bad Debt Expense for the year?

debit Allowance for Doubtful Accounts, $34,200; credit Bad Debt Expense, $34,200

debit Bad Debt Expense, $34,200; credit Allowance for Doubtful Accounts, $34,200

debit Allowance for Doubtful Accounts, $29,600; credit Bad Debt Expense, $29,600

debit Bad Debt Expense, $29,600; credit Allowance for Doubtful Accounts, $29,600

3)

Allowance for Doubtful Accounts has a credit balance of $429 at the end of the year (before adjustment), and bad debt expense is estimated at 1% of sales. If sales are $558,200, the amount of the adjusting entry to record the estimated uncollectible accounts receivable is

Select the correct answer.

$429

$6,011

$5,153

$5,582