Question 4

Cheyenne Company reports the following financial information before adjustments.

		Dr.			Cr.
Accounts Receivable		$134,200
Allowance for Doubtful Accounts					$2,550
Sales Revenue (all on credit)					817,200
Sales Returns and Allowances		51,990

Prepare the journal entry to record bad debt expense assuming Cheyenne Company estimates bad debts at (a) 5% of accounts receivable and (b) 5% of accounts receivable but Allowance for Doubtful Accounts had a $1,350 debit balance. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

No.	Account Titles and Explanation	Debit	Credit
(a)	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
(b)	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount