Question
Whispering Company reports the following financial information before adjustments. Dr. Cr. Accounts Receivable $139,800 Allowance for Doubtful Accounts $3,160 Sales Revenue (all on credit) 815,500
Whispering Company reports the following financial information before adjustments.
| Dr. | Cr. | |||||
|---|---|---|---|---|---|---|
| Accounts Receivable | $139,800 | |||||
| Allowance for Doubtful Accounts | $3,160 | |||||
| Sales Revenue (all on credit) | 815,500 | |||||
| Sales Returns and Allowances | 51,950 | |||||
Prepare the journal entry to record bad debt expense assuming Whispering Company estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but Allowance for Doubtful Accounts had a $1,450 debit balance.
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Business Accounting Volume 2
Authors: Frank Wood
4th Edition
0582413435, 978-0582413436
