(Answered) Question - computing bad debts and preparing journal

Accounting

Question - Computing Bad Debts and Preparing Journal Entries

The trial balance before adjustment of Estefan Inc. shows the following balances.

Dr. Cr.

Accounts Receivable $80,000

Allowance for Doubtful Accounts 1,750

Sales (all on credit) $580,000

Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% of gross accounts receivable and (b) 1% of net sales.

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