Brief Exercise 9-06 a-b Sunland Co. uses the percentage-of-receivables basis to record bad debt expense. It estimates that 2% of accounts receivable will become uncollectible. Accounts receivable are $620,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,02 Prepare the adjusting Journal entry to record bad debt expense for the year. (Credit account titles are automatically indented when amount entered. Do not indent manually.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS If the allowance for doubtful accounts had a debit balance of $800 instead of a credit balance of $2,020, determine the amount to be reported for bad debt expense. Bad Debts Expense
Brief Exercise 9-06 a-b Sunland Co. uses the percentage-of-receivables basis to record bad debt expense. It estimates that 2% of accounts receivable will become uncollectible. Accounts receivable are $620,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,02 Prepare the adjusting Journal entry to record bad debt expense for the year. (Credit account titles are automatically indented when amount entered. Do not indent manually.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS If the allowance for doubtful accounts had a debit balance of $800 instead of a credit balance of $2,020, determine the amount to be reported for bad debt expense. Bad Debts Expense
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter16: Accounting For Accounts Receivable
Section: Chapter Questions
Problem 2SEA: UNCOLLECTIBLE ACCOUNTSPERCENTAGE OF SALES Rossins Racers has total credit sales for the year of...
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