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7 BE6.5 (LO 3) Wilton, Inc. had net sales in 2025 of $1,400,000. At December 31, 2025, before adjusting entries, the balances in selected accounts
7 BE6.5 (LO 3) Wilton, Inc. had net sales in 2025 of $1,400,000. At December 31, 2025, before adjusting entries, the balances in selected accounts were Accounts Receivable $250,000 debit, and Allowance for Doubtful Accounts $2,400 credit. If Wilton estimates that 8% of its receivables will prove to be uncollectible, prepare the December 31, 2025, journal entry to record bad debt expense. BE6.6 (LO 3) Use the information presented in BE6.5 for Wilton, Inc. a. Instead of an Allowance for Doubtful Accounts Balance of $2,400 credit, the balance was $1,900 debit. Assume that 10% of accounts receivable will prove to be uncollectible. Prepare the entry to record bad debt expense. b. Instead of estimating uncollectibles based on a percentage of receivables, assume Wilton prepares an aging schedule that estimates total uncollectible accounts at $24,600. (Assume an allowance of $2,400 credit.) Prepare the entry to record bad debt expense.
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