Answered

Westonci.ca is the Q&A platform that connects you with experts who provide accurate and detailed answers. Our platform provides a seamless experience for finding precise answers from a network of experienced professionals. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.

Alvin's Transport has total credit sales for the year of $182,000 and estimates that 3% of its credit sales will be uncollectible. Record the end-of-period adjusting entry on December 31, in general journal form, for the estimated bad debt expense. Assume the following independent conditions existed prior to the adjustment:

a. Allowance for Doubtful Accounts has a credit balance of $570.
b. Allowance for Doubtful Accounts has a debit balance of $360

Sagot :

Tundexi

Answer:

S/n      Account Title and Explanation      Debit     Credit

a.         Bad Debt Expense                         $5,460

            ($182,000 sales x 3%)

                   Allowance for Doubtful Accounts       $5,460

           (To record bad debt expense)

b.        Bad Debt Expense                         $5,460

            ($182,000 sales x 3%)

                   Allowance for Doubtful Accounts       $5,460

           (To record bad debt expense)

We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.