Question
Bee's Inc's unadjusted trial balance shows the following balances: Accounts Receivable $220,000; Allowance for Doubtful Accounts $(12,000) Sales $980,000 (of which $720,000 were Credit Sales)
Bee's Inc's unadjusted trial balance shows the following balances:
Accounts Receivable $220,000; Allowance for Doubtful Accounts $(12,000)
Sales $980,000 (of which $720,000 were Credit Sales)
What is the amount of the adjusting entry to estimate the bad debt expense assuming that an aging analysis estimates that $26,000 of the Accounts Receivables are deemed uncollectible?
Bad Debt Expense: 14,000
What is the new credit balance in Allowance for Doubtful Accounts after the adjusting entry is posted?
Allowance for Doubtful Accounts balance:
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, George Foster, Srikant M. Datar
8th Edition
0131810669, 978-0131810662
