Question
The trial balance before adjustment of Estefan Inc. shows the following balances. Dr. Cr. Accounts Receivable $80,000 Allowance for Doubtful Accounts 1,750 Sales, Net (all
The trial balance before adjustment of Estefan Inc. shows the following balances.
Dr. Cr.
Accounts Receivable $80,000
Allowance for Doubtful Accounts 1,750
Sales, Net (all on credit) $580,000
Instructions
Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% of gross accounts receivable and (b) 1% of net sales.
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Marketing Research
Authors: David A. Aaker, V. Kumar , George S. Day
8th Edition
047123057X, 9780471230571
