On december 31 of the current year a companys unadjusted, Ask an Expert

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On December 31, of the current year, a company's unadjusted trial balance revealed the following: Accounts receivable of $185,600; Sales Revenue of $1,280,000; (75% were on credit), and Allowance for Doubtful Accounts of $1,600 (credit balance).

Prepare the adjusting journal entry to record the estimate for bad debts assuming:

1. 6% of the accounts receivable balance is assumed to be uncollectible.

2. Bad debts expense is estimated to be 1.5% of credit sales.

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Accounting Basics, Accounting

Category:- Accounting Basics
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