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Kingbird, Inc. uses the percentage-of-receivables basis to record bad debt expense and concludes that 3% of accounts receivable will become uncollectible. Accounts receivable are $429,500

Kingbird, Inc. uses the percentage-of-receivables basis to record bad debt expense and concludes that 3% of accounts receivable will become uncollectible. Accounts receivable are $429,500 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,950.

(a) Prepare the adjusting journal entry to record bad debt expense for the year.
(b) If the allowance for doubtful accounts had a debit balance of $870 instead of a credit balance of $2,950, prepare the adjusting journal entry for bad debt expense.

(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.

Account Titles and Explanation

Debit

Credit

(a)

Enter an account title

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Enter a debit amount

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Enter a credit amount

image text in transcribed

Enter an account title

image text in transcribed

Enter a debit amount

image text in transcribed

Enter a credit amount

image text in transcribed

(b)

Enter an account title

image text in transcribed

Enter a debit amount

image text in transcribed

Enter a credit amount

image text in transcribed

Enter an account title

image text in transcribed

Enter a debit amount

image text in transcribed

Enter a credit amount

image text in transcribed

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