Question
Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $858,000 and sales for the
Providing for Doubtful Accounts
At the end of the current year, the accounts receivable account has a debit balance of $858,000 and sales for the year total $9,730,000.
a. The allowance account before adjustment has a debit balance of $11,600. Bad debt expense is estimated at 3/4 of 1% of sales.
b. The allowance account before adjustment has a debit balance of $11,600. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $37,100.
c. The allowance account before adjustment has a credit balance of $7,300. Bad debt expense is estimated at 1/4 of 1% of sales.
d. The allowance account before adjustment has a credit balance of $7,300. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $60,600.
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=_____
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