question 1

Aaron Servicing showed the following partial unadjusted results at October 31, 2021, its year-end:

Account

Debit

Credit

Sales

2,000,000

Accounts Receivable

180,000

Allowance For Doubtful Accounts

3,200

Part 1 Required a. Assuming Aaron estimates bad debts to be 1.5% of sales, prepare the adjusting entry at October 31, 2021.

Date

Account Titles

Debit

Credit

b. Show how accounts receivable would be shown on the October 31, 2021, balance sheet using your calculations in (a).

Aaron Servicing

Allowance for Doubtful Accounts

Partial Balance Sheet

October 31, 2021