E9: Chapter 9 Accounting for Receivables (10 Points)

Bono Co. uses an allowance method based on 8% of receivables to estimate bad debts. The Accounts Receivable, Allowance for Doubtful Accounts and Bad Debt Expense General Ledger accounts are shown below. Prepare and post the journal entry to record bad debs for 2015. Remember to use the Date and PR columns in both the General Journal and the General Ledger. .

General Journal

				Page 6
Date	Account Titles and Explanation	PR	Debit	Credit
2015

Partial General Ledger

			Accounts Receivable	ACCT	110
Date					Debit
2015	Explanation	PR	Debit	Credit	Balance
12/31	Balance				150,000

			Allowance for Doubtful Accounts	ACCT	115
Date					Credit
2015	Explanation	PR	Debit	Credit	Balance
12/31	Balance				1,000

			Bad Debt Expense	ACCT	550
Date
2015	Explanation	PR	Debit	Credit	Balance
12/31	Balance				0