Question
On Dec 31 st 2015, before adjusting entries, Nook Inc. reports the following information for the year of 2015: Net Credit Sales $200,000 Net Cash
On Dec 31st 2015, before adjusting entries, Nook Inc. reports the following information for the year of 2015:
| Net Credit Sales | $200,000 |
| Net Cash Sales | $120,000 |
| Net Sales Revenue | $320,000 |
| COGS | $140,000 |
| Gross Profit | $180,000 |
| Net Accounts Receivable | $14,000 |
| Allowance for Doubtful Accounts | $3,000 |
Nook Inc. estimates that 2% of net credit sales in 2015 will be uncollectible.
Provide the adjusting entries on Dec 31st 2015 required to recognize the bad debt expense for the year of 2015
What is the ending balance of the Allowance for Doubtful accounts after adjusting entries?
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