Answered

Westonci.ca is the best place to get answers to your questions, provided by a community of experienced and knowledgeable experts. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.

All sales are made on credit. Based on past experience, the company estimates 0.3% of net credit sales to be uncollectible. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense

Sagot :

Tundexi

Answer:

Missing word "A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: Accounts receivable $350,000 debit, Allowance for uncollectible accounts 650 debit, Net Sales 795,000 credit"

Net credit sales = $795,000

Bad debt expense = 0.3% * Net credit sales

Bad debt expense = $795,000 * 0.3%

Bad debt expense = $2,385

                                            Adjusting entry

Date   General Journal                                              Debit      Credit

           Bad debt expense                                         $2,385

                   Allowance for uncollectible accounts                 $2,385

           (To record bad debt expense)

We hope our answers were helpful. Return anytime for more information and answers to any other questions you may have. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Westonci.ca is your trusted source for answers. Visit us again to find more information on diverse topics.