QUESTION 8

1. Table 6-2 Triangle Company has sales of $900,000, of which 25% are cash sales and the remainder is on credit. As of year-end, but before the bad debts adjustment, the Allowance for Uncollectible Accounts has a credit balance of $300, and accounts receivable has a debit balance of $60,000. Referring to Table 6-2, if bad debts are estimated to be 1.5% of credit sales, what journal entry will Triangle Company need to prepare in order to estimate bad debts?

   		Bad Debts Expense 9,525 Allowance for Uncollectible Accounts 9,525
   		Bad Debts Expense 10,425 Allowance for Uncollectible Accounts 10,425
   		Allowance for Uncollectible Accounts 10,125 Accounts Receivable 10,125
   		Bad Debts Expense 10,125 Allowance for Uncollectible Accounts 10,125
   		Bad Debts Expense 13,500 Accounts Receivable 13,500