Question
At December 31, Folgeys Coffee Company reports the following results for its calendar year. Cash sales $ 912,000 Credit sales 312,000 Its year-end unadjusted trial
At December 31, Folgeys Coffee Company reports the following results for its calendar year. Cash sales $ 912,000 Credit sales 312,000 Its year-end unadjusted trial balance includes the following items. Accounts receivable $ 137,000 debit Allowance for doubtful accounts 6,200 debit Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (1) 3% of credit sales, (2) 1% of total sales and (3) 6% of year-end accounts receivable.
B,Record Bad Debts Expense assuming uncollectibles are estimated to be 1% of total sales.
C, Record Bad Debts Expense assuming uncollectibles are estimated to be 6% of year-end accounts receivable.
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