Question
Company B estimates bad debt expense to be 2% of credit sales, which were $610,000 for the year. If the allowance account has a debit
Company B estimates bad debt expense to be 2% of credit sales, which were $610,000 for the year. If the allowance account has a debit balance of $900 before adjustment, the journal entry necessary to record bad debt expense is:
debit Allowance for Doubtful Accounts for $12,200; credit Bad Debt Expense for $12,200 | ||
debit Allowance for Doubtful Accounts for $11,300; credit Bad Debt Expense for $11,300 | ||
debit Bad Debt Expense for $12,200; credit Allowance for Doubtful Accounts for $12,200 | ||
debit Bad Debt Expense for $13,100; credit Allowance for Doubtful Accounts for $13,100 | ||
debit Bad Debt Expense for $11,300; credit Allowance for Doubtful Accounts for $11,300 | ||
debit Allowance for Doubtful Accounts for $13,100; credit Bad Debt Expense for $13,100 |
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