A company uses the allowance method and expects to not collect $15,000 of sales.

Question

A company uses the allowance method and expects to not collect $15,000 of sales. The journal entry to record the estimated bad debt is __________.

Question 1 options:

After aging the receivables, Tim’s Toys estimates that $900 will not be collected, and the Allowance account has a debit balance of $325. The adjusting entry would be for __________.

Question 2 options:

$575

$900

$1,225

$325

A company uses the allowance method and expects to not collect $15,000 of sales. The journal entry to record the estimated bad debt is __________.

Question 1 options:

Allowance for Doubtful Accounts $15,000 Bad Debt Expense $15,000 Allowance for Doubtful Accounts $15,000 Accounts Receivable $15,000 Accounts Receivable $15,000 Allowance for Doubtful Accounts $15,000 Bad Debt Expense $15,000 Allowance for Doubtful Accounts $15,000

Explanation / Answer

1 Correct entry is Bad debt expense $       15,000 Allowance for Doubtful accounts $       15,000 2 The adjusting entry would be for = $         1,225 ($900+ $325)

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