Providing for Doubtful Accounts

At the end of the current year, the accounts receivable account has a debit balance of $962,000 and sales for the year total $10,910,000.

a. The allowance account before adjustment has a credit balance of $13,000. Bad debt expense is estimated at 1/4 of 1% of sales.

b. The allowance account before adjustment has a credit balance of $13,000. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $41,600.

c. The allowance account before adjustment has a debit balance of $7,000. Bad debt expense is estimated at 1/2 of 1% of sales.

d. The allowance account before adjustment has a debit balance of $7,000. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $58,100.

Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above.

a.

b.

c.

d.