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Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $81,000, and it estimates that 3%
Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $81,000, and it estimates that 3% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has: (a) a $1,377 credit balance before the adjustment (b) a $405 debit balance before the adjustment View transaction list Journal entry worksheet Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has a $405 debit balance before the adjustment. Note: Enter debits before credits. Transaction General Journal Debit Credit (b) Record entry Clear entry View general journal Prepare the assumption before the a pense under the $405 debit balance Accounts payable-Credit Card cos. Accounts receivable-Credit Card cos. Allowance for doubtful accounts Bad debts expense Cash Note: Enter debi Debit Credit Cost of goods sold ce the ption Credit card expense spense $405 d the a Factoring fee expense er debit Interest receivable Interest revenue ction Debit Merchandise inventory the tion he a Notes payable pen $405 Notes receivable Prepaid insurance debit Sales on De Notes payable e the ption the a pense $405 Notes receivable Prepaid insurance Sales er debit Sales discounts etion Deb
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