Lighthouse inc. uses the percentage of credit sales method, Ask an Expert

Accounting

Credit sales of $1,500,000 for fiscal year 2010.

12/31/10 Accounts Receivable balance of $250,000.

12/31/10 Allowance for Doubtful Accounts credit balance of $2,000 before adjusting journal entries are recorded.

Lighthouse, Inc. uses the percentage of credit sales method to record bad debt and estimates the percentage to be 2.5%. What is the adjusting entry to record bad debt on 12/31/10?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9440264

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