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Accounts receivable has a balance of 750,000 and the allowance for doubtful accounts has a debit balance of 600at the end of the current year
Accounts receivable has a balance of 750,000 and the allowance for doubtful accounts has a debit balance of 600at the end of the current year prior to adjustment. Net credit sales for the current year are 850,000 and 4.5% of net credit sales estimated to be uncollectible. The adjusting entry using the percentage of sales method would require a credit to: A. allowance for doubtful accounts 600 B. accounts receivable 600 C. dad debt expense 37,650 D. allowance for doubtful accounts 38,850 E. None of the above
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