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Farr Co. elects to use the percentage-of-sales basis in 2017 to record bad debt expense. It estimates that2% of net credit sales will become uncollectible.
Farr Co. elects to use the percentage-of-sales basis in 2017 to record bad debt expense. It estimates that2% of net credit sales will become uncollectible. Sales revenues are $800,000for 2017, sales returns and allowances are $40,000, and the allowance for doubtful accounts has a credit balance of $9,000.
Prepare the adjusting entry to record bad debt expense in 2017.
I have the journal entry account title correct I am not sure how to calculate the amounts... Please explain.
Bad Debt
Allowance for Doubtful Accounts
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