Exercise 7-07

Skysong Company reports the following financial information before adjustments.

		Dr.			Cr.
Accounts Receivable		$138,100
Allowance for Doubtful Accounts					$2,970
Sales Revenue (all on credit)					845,000
Sales Returns and Allowances		53,310

Prepare the journal entry to record bad debt expense assuming Skysong Company estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but Allowance for Doubtful Accounts had a $1,410 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.)

No. Account Titles and Explanation Debit Credit () Open Show Work click if you would like to Show Work for this