Question
Borke Company has a credit balance of $3,470 in Allowance for Doubtful Accounts. The estimated bad debt expense under the percentage-of-sales basis is $4,180. The
Borke Company has a credit balance of $3,470 in Allowance for Doubtful Accounts. The estimated bad debt expense under the percentage-of-sales basis is $4,180. The total estimated uncollectibles under the percentage-of-receivables basis is $6,160. Prepare the adjusting entry under each basis. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
| Account Titles and Explanation | Debit | Credit |
| (Under the percentage-of-sales basis.) | ||
| (Under the percentage-of-receivables basis.) |
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
6th edition
1305637100, 978-1305637108
