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E7.9B (L03) (Computing Bad Debts and Preparing Journal Entries) The trial balance before adjustment of Santillan Inc. shows the following balances: DEBITS CREDITS Accounts Receivable
| E7.9B (L03) (Computing Bad Debts and Preparing Journal Entries) The trial balance before adjustment of Santillan Inc. shows the following balances: | |||||||||
| DEBITS | CREDITS | ||||||||
| Accounts Receivable | $180,000 | ||||||||
| Allowance for Doubtful Accounts | $3,500 | ||||||||
| Sales (all on account ) | $1,000,000 | ||||||||
| Instructions | |||||||||
| Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of ( | |||||||||
| a) 5% of accounts receivable and | |||||||||
| (b) 5% of accounts receivable but Allowance for Doubtful Accounts had a $2,500 DEBIT balance. | |||||||||
| (C) 1% of Sales , Allowance has a $3,500 credit balance | |||||||||
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Fundamentals Of Oil And Gas Accounting
Authors: Rebecca A. Gallun, Ph.D. Wright, Charlotte J, Linda M. Nichols, John W. Stevenson
4th Edition
0878147934, 9780878147939
