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Question 2

Exercise 7-7 Percent of accounts receivable method LO P3 Mazle Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $115,500, and it estimates that 4% will be uncollectible, Prepare the year end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has: (a) a $1,964 credit balance before the adjustment. (b) a $578 debit balance before the adjustment 1 3 View transaction list 2 Journal entry worksheet points eBook Hint Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has a $1,964 credit balance before the adjustment. Print References Note: Enter debits before credits General Journal Debit Credit Transaction (a) Clean Vianoc 3 View transaction list Journal entry worksheet Ints Mar. 2 Accepted an $10,000, 6%, 90-day note in granting a time extension on the past-due account receivable from Collins Co. Note: Enter debits before credits. Date General Journal Debit Credit Mar 02 Record entry Clear entry View general journal View transaction list Journal entry worksheet thing Mar. 17 Accepted a $10,800, 30-day, 7% note in granting Kathy Perry a time extension on her past-due account receivable. Note: Enter debits before credits. Date General Journal Debit Credit Mar 17 Record entry Clear entry View general journal View transaction list Journal entry worksheet ped May 31 Collins Co. dishonored its note. Note: Enter debits before credits. General Journal Debit Credit Date May 31 Record entry Clear entry View general journal View transaction list Journal entry worksheet Aug. 7 Accepted a(n) $20,000, 90-day, 6% note in granting a time extension on the past-due account receivable of Brown Co. Note: Enter debits before credits. Date General Journal Debit Credit Aug 07 Record entry Clear entry View general journal View transaction list Journal entry worksheet 6 3 4 5 8 2 8 9 10 > 9 10 Nov. 2 Received payment of principal plus interest from Lee for the September 3 note. ces Note: Enter debits before credits. Date General Journal Debit Credit Nov 02 Record entry Clear entry View general journal View transaction list Journal entry worksheet Nov. 5 Received payment of principal plus interest from Brown for the August 7 note. S Note: Enter debits before credits. Date General Journal Debit Credit Nov 05 Record entry Clear entry View general journal View transaction list Journal entry worksheet Dec. 1 Wrote off the Perry account against Allowance for Doubtful Accounts. No additional interest was accrued. Note: Enter debits before credits. Date General Journal Debit Credit Dec 01 Record entry Clear entry View general journal