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I was just wondering since I am new to this site, if you could check an assignment for accuracy in my accounting class if I
I was just wondering since I am new to this site, if you could check an assignment for accuracy in my accounting class if I attached the file?
Type the answers in the Gray Boxes Date BE 8-6 Account Titles and Explanation Bad Debt Expense Allowance for Doubtful Accounts BE 8-7 A. B. Bad Debt Expense Allowance for Doubtful Accounts Bad Debt Expense Debit Credit 15,100 9,000 4,500 1,500 3,700 BE8-6 Nieto Co. elects to use the percentage-of-sales basis in 2011 to record bad debts expense. It estimates that 2% of net credit sales will become uncollectible. Sales are $800,000 for 2011, sales returns and allowances are $45,000, and the allowance for doubtful accounts has a credit balance of $9,000. Prepare the adjusting entry to record bad debts expense in 2011. BE8-7 Linhart Co. uses the percentage-of-receivables basis to record bad debts expense. It estimates that 1% of accounts receivable will become uncollectible. Accounts receivable are $450,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $1,500.00 (a) Prepare the adjusting journal entry to record bad debts expense for the year. (b) If the allowance for doubtful accounts had a debit balance of $800 instead of a credit balance of $1,500, determine the amount to be reported for bad debts expenseStep by Step Solution
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