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At the end of the current year, the accounts receivable account has a debit balance of $1,095,000 and sales for the year total $12,420,000. The
At the end of the current year, the accounts receivable account has a debit balance of $1,095,000 and sales for the year total $12,420,000.
- The allowance account before adjustment has a debit balance of $14,800. Bad debt expense is estimated at 3/4 of 1% of sales.
- The allowance account before adjustment has a debit balance of $14,800. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $47,400.
- The allowance account before adjustment has a credit balance of $5,300. Bad debt expense is estimated at 1/4 of 1% of sales.
- The allowance account before adjustment has a credit balance of $5,300. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $44,000.
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