Hello, I need help with the following question(s): rConnect xC Chegg Study | Gui

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Hello, I need help with the following question(s):

rConnect xC Chegg Study | Guided So X ? | Secure l https://newconnect.mheducation.com/flow/connect.html Ch 7 Exercises Help Save & Exit Submit Saved Check my work 14 Exercise 7-6 Percent of accounts receivable method LO P3 3.96 pcinis At each calendar year-end, Mazie Supply Co. uses the percent of accounts recelvable method to estimate bad debts On December 31, 2017, it has outstanding accounts receivable of $55,000, and it estimates that 2% will be uncollectible Prepare the adjusting entry to record bad debts expense for year 2017 under the assumption that the Allowance for Doubtful Accounts has eBook Hint (aj a $415 credit balance before the adjustment. (by a $291 debit balance before the adjustment. Piint References View transaction list Journal entry worksheet Prepare the adjusting entry to record bad debts expense for year 2017 under the assumption that the Allowance for Doubtful Accounts has a $415 credit balance before the adjustment Mc Graw Pre14 of 14Next 8-07 PM O Type here to search f ~ )7/10/2018

Explanation / Answer

Req a: Estimated allowance balance required 1100 (55000*2%) Less: Existing balance in Allowance account 415 Bad debts expense 685 Journal entry: Bad debts expense Account Dr. 685     Allowance for doubtful account 685.00 Req b: Estimated allowance balance required 1100 (55000*2%) Add: Existing debit balance in Allowance account 291 Bad debts expense 1391 Journal entry: Bad debts expense Account Dr. 1391     Allowance for doubtful account 1391

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