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Johnson Manufacturing had sales of 12,000,000 during the year. Their accounts receivable balance was 2,500,000 and allowance for bad debt balance was 156,000. Johnson Manufacturing
Johnson Manufacturing had sales of 12,000,000 during the year. Their accounts receivable balance was 2,500,000 and allowance for bad debt balance was 156,000. Johnson Manufacturing uses an estimate of 2% of credit sales for their adjusting entry for allowance for bad debt. Credit sales make up to 70% of the company's total sales. What is the adjusting entry Johnson manufacturing should be?
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