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The trial balance before adjustment of Teal Mountain Inc. shows the following balances: Dr. Cr. Accounts receivable $108,900 Allowance for doubtful accounts 1,965 Sales revenue

The trial balance before adjustment of Teal Mountain Inc. shows the following balances:

Dr. Cr.

Accounts receivable

$108,900

Allowance for doubtful accounts

1,965

Sales revenue (all on credit)

$695,000

Sales returns and allowances

28,000

Give the entry for bad debt expense for the current year assuming the allowance should be 4% of gross accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation

Debit

Credit

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

eTextbook and Media

List of Accounts

Give the entry for bad debt expense for the current year assuming historical records show that, based on accounts receivable aging, the following percentages will not be collected: (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Balance Percentage Estimated to Be Uncollectible

030 days outstanding

$36,800 1%

3160 days outstanding

49,000 5%

6190 days outstanding

14,000 12%

Over 90 days outstanding

9,100 18%

Account Titles and Explanation

Debit

Credit

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

eTextbook and Media

List of Accounts

Give the entry for bad debt expense for the current year assuming allowance for doubtful accounts is $1,965 but it is a credit balance and the allowance should be 4% of gross accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation

Debit

Credit

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

eTextbook and Media

List of Accounts

Give the entry for bad debt expense for the current year assuming allowance for doubtful accounts is $1,965 but it is a credit balance and historical records show that the following percentages will not be collected: (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Balance Percentage Estimated to Be Uncollectible

030 days outstanding

$36,800 1%

3160 days outstanding

49,000 5%

6190 days outstanding

14,000 12%

Over 90 days outstanding

9,100 18%

Account Titles and Explanation

Debit

Credit

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

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