Question
Ahmed SA reports the following financial information before adjustments. Dr. Cr. Accounts Receivable 100,000 Allowance for Doubtful Accounts 2,000 Sales Revenue (all on credit) 900,000
- Ahmed SA reports the following financial information before adjustments.
|
| Dr. | Cr.
|
| Accounts Receivable | 100,000 |
|
| Allowance for Doubtful Accounts |
| 2,000 |
| Sales Revenue (all on credit)
|
| 900,000 |
| Sales Returns and Allowances
| 50,000 |
|
Instructions: Prepare the journal entry to record Bad Debt Expense assuming Ahmed estimates bad debts at (a) 1% of net sales and (b) 5% of accounts receivable.
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Effective Internal Auditing
Authors: Manuel E. Peña-Rodríguez
1st Edition
1736742922, 978-1736742921
