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Sunland Company reports the following financial information before adjustments. Dr. Cr. Accounts receivable 61,000 Allowance for doubtful accounts 700 Sales revenue (all on credit) 630,000
Sunland Company reports the following financial information before adjustments.
Dr. | Cr. | ||||
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Accounts receivable | 61,000 | ||||
Allowance for doubtful accounts | 700 | ||||
Sales revenue (all on credit) | 630,000 | ||||
Sales returns and allowances | 32,000 |
Prepare the journal entry to record Bad Debt Expense assuming Sunland Company estimates the necessary allowance for doubtful accounts at (a) 4% of accounts receivable.
Account Titles and Explanation | Debit | Credit |
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(b) 4% of accounts receivable, but the Allowance for Doubtful Accounts had a $3,400 debit balance.
Account Titles and Explanation | Debit | Credit |
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