Question
The trial balance before adjustment of Estefan Inc. shows the following balances. Dr. Cr. Accounts Receivable Dr. $80,000 Allowance for Doubtful Accounts Dr. 1,750 Sales,
The trial balance before adjustment of Estefan Inc. shows the following balances. Dr. Cr.
Accounts Receivable Dr. $80,000
Allowance for Doubtful Accounts Dr. 1,750
Sales, Net Revenue (all on credit) Cr. $580,000
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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Public Sector Accounting And Auditing In EuropeThe Challenge Of Harmonization
Authors: I. Brusca, E. Caperchione, S. Cohen, F Manes Rossi
3rd Edition
1137461330, 9781137461339
