Exercise 7-09 a1-a4

The trial balance before adjustment of Splish Brothers Inc. shows the following balances:

		Dr.		Cr.
Accounts receivable		$102,400
Allowance for doubtful accounts		1,980
Sales revenue (all on credit)				$657,500
Sales returns and allowances		30,300

Give the entry for bad debt expense for the current year assuming the allowance should be 4% of gross accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount

SHOW LIST OF ACCOUNTS

Give the entry for bad debt expense for the current year assuming historical records show that, based on accounts receivable aging, the following percentages will not be collected: (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

		Balance		Percentage Estimated to Be Uncollectible
030 days outstanding		$35,000		1%
3160 days outstanding		45,900		5%
6190 days outstanding		12,400		12%
Over 90 days outstanding		9,100		18%

Account Titles and Explanation	Debit	Credit
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount

SHOW LIST OF ACCOUNTS

Give the entry for bad debt expense for the current year assuming allowance for doubtful accounts is $1,980 but it is a credit balance and the allowance should be 4% of gross accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount

SHOW LIST OF ACCOUNTS

Give the entry for bad debt expense for the current year assuming allowance for doubtful accounts is $1,980 but it is a credit balance and historical records show that the following percentages will not be collected: (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

		Balance		Percentage Estimated to Be Uncollectible
030 days outstanding		$35,000		1%
3160 days outstanding		45,900		5%
6190 days outstanding		12,400		12%
Over 90 days outstanding		9,100		18%

Account Titles and Explanation	Debit	Credit
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount