Question $4$ of $14$

$\frac{1\mathrm{.}67}{5}$

Your answer is partially correct.

Pharoah Corp uses the percentage$-$of$-$receivables basis to record bad debt expense.

$\backslash$table$[[$Accounts receivable $($ending balance$),$$$580,000,($debit$)],[$Allowance for doubtful accounts $($unadjusted$),4,300,($debit$)]]$

The company estimates that $2\%$ of accounts receivable will become uncollectible.

$($a$)$

Prepare the adjusting journal entry to record bad debt expense for the year. $($List debit entry before qredit entry. Credit account tit$)$ automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles enter $0$ for the amounts.$)$

Account Titles and Explanation

Debit

Credit

Bad Debt Expense

Allowance for Doubtful Accounts

$($b$)$