Exercise $7-13($Algo$)$ Percent of accounts receivable method LO P$3$

Mazie Supply Company uses the percent of accounts receivable method. On December $31,$ it has outstanding accounts receivable of $$111,000,$ and it estimates that $5\%$ will be uncollectible.

$7$:$48$

Prepare the year$-$end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has:

$($a$)$ a $$1,887$ credit balance before the adjustment.

$($b$)$ a $$555$ debit balance before the adjustment.

Journal entry worksheet

$1$

$2$

Prepare the year$-$end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has a $$1,887$ credit balance before the adjustment.

Note: Enter debits before credits.

$\backslash$table$[[$Transaction$,$General Journal,Debit,Credit$],[($a$),,,],[,,,],[,,,],[,,,]]$

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