Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $681,000 and sales for the year total $7,720,000. a. The allowance account before adjustment has a credit balance of $9,200. Bad debt expense is estimated at 3/4 of 1% of sales. b. The allowance account before adjustment has a credit balance of $9,200. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $29,400. c. The allowance account before adjustment has a debit balance of $9,200. Bad debt expense is estimated at 1/2 of 1% of sales. d. The allowance account before adjustment has a debit balance of $9,200. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $76,400. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above. a. $ 19,300 X b. $ 20,200 c. $ 57,900 X d. $ 82,800 X The following selected transactions were completed by Fasteners Inc. Co., a supplier of buttons and zippers for clothing: 20Y3 Nov. 21. Received from McKenna Outer Wear Co., on account, a $90,000, 60-day, 10% note dated November 21 in settlement of a past due account. Dec. 31. 20Y4 Jan. 20. Recorded an adjusting entry for accrued interest on the note of November 21. Received payment of note and interest from McKenna Outer Wear Co. Journalize the entries to record the transactions. If an amount box does not require an entry, leave it blank. Assume a 360-day year when calculating interest. Round answers to the nearest dollar amount. 20Y3, Nov. 21 Dec. 31 2014, Jan. 20 Check My Work Allowance for Doubtful Accounts Cash Interest Expense Interest Payable Interest Revenue Previous Next