Question
At December 31, 2021, Pharoah Industries reports the following selected accounts from the unadjusted trial balance for its first year of operations: Account Accounts
At December 31, 2021, Pharoah Industries reports the following selected accounts from the unadjusted trial balance for its first year of operations: Account Accounts receivable Debit $756,000 Credit Accounts payable $378,000 Cash 43,200 Cost of goods sold 1,890,000 Interest receivable 1,225 Interest revenue 2,425 Merchandise inventory 351,000 Notes receivable, due April 10, 2022 48,600 Prepaid insurance 8,640 Refund liability 65,000 Short-term investments 54,000 Sales 3,585,600 Sales returns and allowances Unearned revenue 108,000 27,000 Prepare the journal entry to record the bad debt expense on December 31, 2021, assuming the credit manager estimates that 4% of the accounts receivable will become uncollectible. (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.) Date Account Titles and Explanation Dec. 31 (To record estimate of uncollectible accounts.) Debit Credit
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