Providing for Doubtful Accounts

At the end of the current year, the accounts receivable account has a debit balance of $1,228,000 and sales for the year total $13,930,000.

The allowance account before adjustment has a credit balance of $16,600. Bad debt expense is estimated at 1/4 of 1% of sales.

The allowance account before adjustment has a credit balance of $16,600. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $53,100.

The allowance account before adjustment has a debit balance of $8,300. Bad debt expense is estimated at 1/2 of 1% of sales.

The allowance account before adjustment has a debit balance of $8,300. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $68,900.

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.$