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On December 31, 2020, four companies had the following account balances related to credit sales and accounts receivable prior to recording adjusting entries. Present the
On December 31, 2020, four companies had the following account balances related to credit sales and accounts receivable prior to recording adjusting entries. Present the adjusting journal entry for each company and answer the question below each journal entry: A. Accounts receivable $200,000 DR, Allowance for Doubtful Accounts $4,000 CR, Sales $ 1,400,000 CR Bad debts are estimated at 6% of accounts receivable. Journal entry: What net realizable accounts receivable $ B. Accounts receivable $180,000 DR, Allowance for Doubtful Accounts $2,000 DR, Sales $1,500,000 CR Bad debts are estimated at 10% of accounts receivable. Journal entry: What is the balance in Bad Debt Expense? $ C. Accounts receivable $240,000 DR, Allowance for Doubtful Accounts $5,000 CR, Sales $1,600,000 CR Bad debts are estimated at 1% of sales. Journal entry: What is the balance in Allowance for Doubtful Accounts? $ D. Accounts receivable $300,000 DR, Allowance for Doubtful Accounts $3,000 DR, Sales $ 1,200,000 CR Bad debts are estimated at 1.5% of sales. Journal entry: What net realizable accounts receivable $ A. Journal entry: What net realizable accounts receivable $. B. Journal entry: What is the balance in Bad Debt Expense? $_ C. Journal entry: What is the balance in Allowance for Doubtful Accounts? $ D. Journal entry
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