Question
The percentage of sales basis is adopted by Al-Shrooq Company. It has been determined that 2% of the credit net sales will become uncollectible. The
The percentage of sales basis is adopted by Al-Shrooq Company. It has been determined that 2% of the credit net sales will become uncollectible. The company had total credit sales of JD 600,000, and granted credit sales discounts of JD 12,000. The adjusting entry would include:
| A- | a debit of JD 11,760 to Allowance for Doubtful Accounts | |
| B- | a credit of JD 12,000 Allowance for Doubtful Accounts
| |
| C- | a debit of JD 12,000 to Bad Debts Expense. | |
| D- | a debit of JD 11,760 to Bad Debts Expense |
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
9th Edition
978-0470317549, 9780470387085, 047031754X, 470387084, 978-0470533475
