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The Reserve for Doubtful Debts Account showed a credit balance of $. 1,500 on 1-1-1996. During 1996 bad debts amounted to $. 1,100. The
The Reserve for Doubtful Debts Account showed a credit balance of $. 1,500 on 1-1-1996. During 1996 bad debts amounted to $. 1,100. The Debtors on 31-12-1996 owed $. 40,000. Maintain a 5% reserve for doubtful debts. During 1997 bad debts came to $. 800. On 31-12-1997 the Debtors owed $. 44,000. The bad debts in 1998 amounted to $. 400. On 31-12-1998 the Debtors owed $. 30,000. Pass Journal entries.
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