Question
View Policies Current Attempt in Progress Bonita Company uses the percentage of receivables method for recording bad debt expense. The accounts receivable balance is $595000
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Current Attempt in Progress
Bonita Company uses the percentage of receivables method for recording bad debt expense. The accounts receivable balance is $595000 and credit sales are $2620000. Management estimates that 3% of accounts receivable will be uncollectible. What adjusting entry will Bonita Company make to record bad debt expense if the Allowance for Doubtful Accounts has a $4900 credit balance before adjustment?
a) Bad Debt Expense 17850
Allowance for Doubtful 17850
Accounts
b)
Bad Debt Expense | 12950 | |
Allowance for Doubtful | 12950 |
Accounts
c)Bad Debt Expense 17850 Accounts Receivable 17850
d)
Bad Debt Expense | 12950 | |
Accounts Receivable | 12950 |
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