Question
Ruben Company has the following information at year-end before adjusting for bad debt. Assume amounts are at their normal balance. Credit Sales: $300,000 Accounts Receivable:
Ruben Company has the following information at year-end before adjusting for bad debt. Assume amounts are at their normal balance.
Credit Sales: $300,000
Accounts Receivable: $48,000
Allowance for Doubtful Accounts - beginning balance: $1,000
The company uses the aging of receivables method to report bad debt. Per the aging schedule, $3,000 is the total estimated uncollectible.
Given this information, what is the journal entry to record bad debt expense?
Dr. Bad Debt Expense 3,000; Cr. Accounts Receivable 3,000
Dr. Bad Debt Expense 2,000; Cr. Allowance for Doubtful Accounts 2,000
Dr. Bad Debt Expense 1,000; Cr. Allowance for Doubtful Accounts 1,000
Dr. Bad Debt Expense 3,000; Cr. Allowance for Doubtful Accounts 3,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started