Novak Corp. uses the percentage$-$of$-$receivables basis to record bad debt expense.

Accounts receivable $($ending balance$)$

$$434,000($debit$)$

Allowance for doubtful accounts $($unadjusted$)$

$4,000($debit$)$

The company estimates that $2\%$ of accounts receivable will become uncollectible.

$($a$)$

Your Answer

Correct Answer

Your answer is partially correct.

Prepare the adjusting journal entry to record bad debt expense for the year. $($Credit account titles are automatically indented when

amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Account Titles and Explanation

Debit

Credit

Bad Debt Expense

Allowance for Doubtful Accounts

$($b$)$

What is the ending $($adjusted$)$ balance in Allowance for Doubtful Accounts? $($Post entries in the order of journal entries posted in the

previous part$)$

Allowance for Doubtful Accounts

eTextbook and Media

List of Accounts

PLEASE HELP WITH B$!$