13. NATO Companys ledger at the end of 2020 shows Accounts Receivable of $250,000.

Instructions

a. If Allowance for Doubtful Accounts has a credit balance of $8,500 in the trial balance and bad debts are expected to be 5% of accounts receivable, journalize the adjusting entry for the end of the period.

b.

If Allowance for Doubtful Accounts has a debit balance of $8,500 in the trial balance and bad debts are expected to be 5% of accounts receivable, journalize the adjusting entry for the end of the period.