Question
1. Prepare the journal entry to record the end-of-period adjustment for bad debts under the ( a ) percentage of credit sales method and (
1. | Prepare the journal entry to record the end-of-period adjustment for bad debts under the (a) percentage of credit sales method and (b) aging of accounts receivable method. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) A)Assume that Simple Co. had credit sales of $272,000 and cost of goods sold of $161,000 for the period. Simple uses the aging method and estimates that the appropriate ending balance in the Allowance for Doubtful Accounts is $3,600. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $360. Record the transaction.
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