Question
The trial balance before adjustment of Risen Company reports the following balances: Dr. Cr. Accounts receivable 100,000 Allowance for doubtful accounts 2,500 Sales (all on
- The trial balance before adjustment of Risen Company reports the following balances:
Dr. Cr.
Accounts receivable 100,000
Allowance for doubtful accounts 2,500
Sales (all on credit) 750,000
Sales returns and allowances 40,000
- Prepare the entry for estimated bad debts assuming that doubtful accounts are estimated to be 6% of gross accounts receivable.
- Assume that all the information above is the same, except that the Allowance for Doubtful Accounts has a debit balance of 2,500 instead of a credit balance. How will this difference affect the journal entry in part (a)?
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Intermediate Accounting
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
10th Canadian Edition, Volume 1
978-1118735329, 9781118726327, 1118735323, 1118726324, 978-0176509736
