The following selected amounts are reported on the year end unadjusted trial balance report for a company that uses the percent of sales method to determine its bad debts expense Accounts receivable $ 426,000 Debit Allowance for Doubtful Accounts 1,440 Debit Net Sales 2,290,000 Credit All sales are made on credit Based on past experience, the company estimates 2 0 of credit sales to be uncollectible What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense Multiple Choice Debit Bad Debts Expense $45,800 credit Allowance for Doubtful Accounts $45,800 Debit Bad Debts Expense $44,360 credit Allowance for Doubtful Accounts $44,360 Debit Bad Debts Expense $47,240 credit Allowance for Doubtful Accounts $47,240 Debit Bad Debts Expense $9,960 credit Allowance for Doubtful Accounts $9,960 Debit Bad Debts Expense $8,520 credit Allowance for Doubtful Accounts $8,520 PART TWO All sales are made on credit Based on past experience, the company estimates 2 0 of ending account receivable to be uncollectible What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense Multiple Choice Debit Bad Debts Expense $4,580 credit Allowance for Doubtful Accounts $4,580 Debit Bad Debts Expense $9,960 credit Allowance for Doubtful Accounts $9,960 Debit Bad Debts Expense $7,080 credit Allowance for Doubtful Accounts $7,080 Debit Bad Debts Expense $14,580 credit Allowance for Doubtful Accounts $14,580 Debit Bad Debts Expense $8,520 credit Allowance for Doubtful Accounts $8,520

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The following selected amounts are reported on the year-end unadjusted trial balance report for a company that uses the percent of sales method to determine

The following selected amounts are reported on the year-end unadjusted trial balance report for a company that uses the percent of sales method to determine its bad debts expense.


Accounts receivable	$	426,000	Debit
Allowance for Doubtful Accounts		1,440	Debit
Net Sales		2,290,000	Credit

All sales are made on credit. Based on past experience, the company estimates 2.0% of credit sales to be uncollectible. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?

Multiple Choice

Debit Bad Debts Expense $45,800; credit Allowance for Doubtful Accounts $45,800.
Debit Bad Debts Expense $44,360; credit Allowance for Doubtful Accounts $44,360.
Debit Bad Debts Expense $47,240; credit Allowance for Doubtful Accounts $47,240.
Debit Bad Debts Expense $9,960; credit Allowance for Doubtful Accounts $9,960.
Debit Bad Debts Expense $8,520; credit Allowance for Doubtful Accounts $8,520.

PART TWO:

All sales are made on credit. Based on past experience, the company estimates 2.0% of ending account receivable to be uncollectible. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?

Multiple Choice

Debit Bad Debts Expense $4,580; credit Allowance for Doubtful Accounts $4,580.
Debit Bad Debts Expense $9,960; credit Allowance for Doubtful Accounts $9,960.
Debit Bad Debts Expense $7,080; credit Allowance for Doubtful Accounts $7,080.
Debit Bad Debts Expense $14,580; credit Allowance for Doubtful Accounts $14,580.
Debit Bad Debts Expense $8,520; credit Allowance for Doubtful Accounts $8,520.