8.6.1

Oriole Company reports the following financial information before adjustments. Dr. Cr. 67,000 900 Accounts receivable Allowance for doubtful accounts Sales revenue (all on credit) Sales returns and allowances 900,000 27,000 Prepare the journal entry to record Bad Debt Expense assuming Oriole Company estimates the necessary allowance for doubtful accounts at (a) 4% of accounts receivable. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit (b) 4% of accounts receivable, but the Allowance for Doubtful Accounts had a $4.500 debit balance. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit