2 value: 3.20 points Exercise 7-5 Percent of accounts receivable method LO P2 At

Question

2 value: 3.20 points Exercise 7-5 Percent of accounts receivable method LO P2 At each calendar year-end, Mazie Supply Co. uses the percent of accounts receivable method to estimate bad debts. On December 31, 2015, it has outstanding accounts receivable of $101,000, and it estimates that 6% will be uncollectible Prepare the adjusting entry to record bad debts expense for year 2015 under the assumption that the Allowance for Doubtful Accounts has: (a) a $1,717 credit balance before the adjustment. (b) a $505 debit balance before the adjustment. View transaction list Journal entry worksheet 2 Prepare the adjusting entry to record bad debts expense for year 2015 under the assumption that the Allowance for Doubtful Accounts has a $1,717 credit balance before the adjustment. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal

Explanation / Answer

Journal entry :

Journal entry :

Date accounts & explanation debit credit (a) Bad debt expense (101000*6%-1717) 4343 Allowance for doubtful accounts 4343 (To record adjusting entry )

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