Question
Concord Company reports the following financial information before adjustments. Dr. Cr. Accounts Receivable $141,000 Allowance for Doubtful Accounts $3,120 Sales Revenue (all on credit) 835,400
Concord Company reports the following financial information before adjustments.
Dr. | Cr. | |||||
---|---|---|---|---|---|---|
Accounts Receivable | $141,000 | |||||
Allowance for Doubtful Accounts | $3,120 | |||||
Sales Revenue (all on credit) | 835,400 | |||||
Sales Returns and Allowances | 53,680 |
Prepare the journal entry to record bad debt expense assuming Concord Company estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but Allowance for Doubtful Accounts had a $1,350 debit balance. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
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