Question
Turtle Island Tours uses the % of Accounts Receivable method to calculate their allowance and the rate they use is 2%. The general ledger has
Turtle Island Tours uses the % of Accounts Receivable method to calculate their allowance and the rate they use is 2%. The general ledger has the following balances at the end of their business year:
Accounts Receivable 45,000
Allowance for Bad Debts 1,200
Sales revenue (from Credit) 250,000
Bad debt Expense 0
Calculate the Allowance and show the journal to establish the Bad Debt allowance at the end of the year:
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International Accounting
Authors: Frederick D. Choi, Gary K. Meek
6th edition
131588141, 978-0131588141
