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In the process of reconciling its bank statement for April, Donahue Enterprises' accountant compiles the following information: Cash balance per company books on April 30
In the process of reconciling its bank statement for April, Donahue Enterprises' accountant compiles the following information: Cash balance per company books on April 30 $6,270 Deposits in transit at month-end $1,310 Outstanding checks at month-end $ 630 Bank charge for printing new checks $ 50 Note receivable and interest collected by bank on Donahue's behalf $ 760 A check paid to Donahue during the month by a customer is returned by the bank as NSF $ 490 The adjusted cash balance per the books on April 30 is: At the end of the current year, using the aging of receivable method, management estimated that $25,500 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a debit balance of $700. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense
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