Question
Sandel Company reports the following financial information before adjustments. Dr. Cr. Accounts Receivable $160,000 Allowance for Doubtful Accounts $2,000 Sales Revenue (all on credit) 800,000
Sandel Company reports the following financial information before adjustments.
Dr. | Cr. | |||
| Accounts Receivable | $160,000 | |||
| Allowance for Doubtful Accounts | $2,000 | |||
| Sales Revenue (all on credit) | 800,000 | |||
| Sales Returns and Allowances | 50,000 |
Prepare the journal entry to record bad debt expense assuming Sandel Company estimates bad debts at (a) 1% of net sales and (b) 5% of accounts receivable.
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Puzzling Auditing Puzzles
Authors: Janice P. Russell
1st Edition
0873894782, 978-0873894784
