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The following information was abracted from the 2014 financial statement of Keller Company Sales 747,000 * Accounts Receivable, December 31, 2014 128,000 Allowance for Doubtful
The following information was abracted from the 2014 financial statement of Keller Company
Sales 747,000 *
Accounts Receivable, December 31, 2014 128,000
Allowance for Doubtful Accounts 1,200 (cr)
Sales discounts 18,000 *
Sales Returns 12,400 *
* 30% related to credit sales
Prepare the adjusting entry for doubtful accounts expense under each of the following assumptions
1) 4 PERCENT OF CURRENT RECEIVABLE ARE UNCOLLECTIBLE.
2) 2.5 PERCENT OF NET CREDIT SALES ARE UNCOLLECTIBLE.
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