Question
In: Accounting
E7.9B (L03) (Computing Bad Debts and Preparing Journal Entries) The trial balance before adjustment of Santillan...
| E7.9B (L03) (Computing Bad Debts and Preparing Journal Entries) The trial balance before adjustment of Santillan Inc. shows the following balances: | |||||||||
| DEBITS | CREDITS | ||||||||
| Accounts Receivable | $180,000 | ||||||||
| Allowance for Doubtful Accounts | $3,500 | ||||||||
| Sales (all on account ) | $1,000,000 | ||||||||
| Instructions | |||||||||
| Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of ( | |||||||||
| a) 5% of accounts receivable and | |||||||||
| (b) 5% of accounts receivable but Allowance for Doubtful Accounts had a $2,500 DEBIT balance. | |||||||||
| (C) 1% of Sales , Allowance has a $3,500 credit balance | |||||||||
| Accts Rec | Allowance For D/A | Sales | |||||||
| 180,000 | 3,500 | 1,000,000 | |||||||
Solutions
ekkarill92 answered 1 year agoRelated Solutions
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Preparing and posting General Journal entries; preparing a trial balance. WiCom Servicing completed these transactions during...
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April
1
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2
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3
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Problem 2-2A Preparing and posting journal entries; preparing a trial balance LO C3, C4, A1, P1,...
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