ure I https://newconnect.mheducation.com/f pi er 9 Homework At December 31, Folg

Question

ure I https://newconnect.mheducation.com/f pi er 9 Homework At December 31, Folgeys Coffee Company reports the following results for its calendar year. Cash sales Credit sales 317,000 Its year-end unadjusted trial balance includes the following items ok Accounts receivable Allowance for doubtful accounts $142,000 debit 6,700 debit Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (a) 4% of total sales and (c) 7% of year-end accounts receivable. list No Tr General Journal Debit Credit Bad debts expense

Explanation / Answer

Case-1 Bad debts expense Account Dr. (317000*4%) 12680      Allowance for Uncollectibles account 12680 Case-2 Bad debts Expense Account Dr. (1234000*2%) 24680       Allowance for Uncollectibles Accounts 24680 case-3 Bad debts expense Account Dr. 16640      Allowance for uncollectibles accounts 16640 Note: Balance at the end of Accounts receivable 142,000 Expected unrealisable @ 7% 9940 Add: Debit balance in Allowance 6700 Total Bad debts expense in case-3 16640

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