Dr. Cr. Prepare the journal entry to record bad debt expense assuming Riverbed C
ID: 2568735 • Letter: D
Question
Dr.
Cr.
Prepare the journal entry to record bad debt expense assuming Riverbed Company estimates bad debts at (a) 5% of accounts receivable and (b) 5% of accounts receivable but Allowance for Doubtful Accounts had a $1,390 debit balance. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
a) bad debt expense __________ Blank
Allowance for Doubtful Accounts Blank ______________
b) bad debt expense __________ Blank
Allowance for Doubtful Accounts Blank ______________
Riverbed Company reports the following financial information before adjustments.Dr.
Cr.
Accounts Receivable $148,800 Allowance for Doubtful Accounts $2,190 Sales Revenue (all on credit) 810,900 Sales Returns and Allowances 52,940
Prepare the journal entry to record bad debt expense assuming Riverbed Company estimates bad debts at (a) 5% of accounts receivable and (b) 5% of accounts receivable but Allowance for Doubtful Accounts had a $1,390 debit balance. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
a) bad debt expense __________ Blank
Allowance for Doubtful Accounts Blank ______________
b) bad debt expense __________ Blank
Allowance for Doubtful Accounts Blank ______________
Explanation / Answer
Date General Journal Debit Credit Answer =A) 1) Bad Debts Expenses $7,440.00 To Allowance for Doubtful Accounts $7,440.00 (Being provision for Bad debts made, 5% of Accoint receivables) Answer =B) 2) Bad Debts Expenses $8,830.00 To Allowance for Doubtful Accounts $8,830.00 (Being provision for Bad debts made, 5% of Accoint receivables and adjustment for debit balance) CALCULATION OF BAD DEBTS A) Bad Debts expenses is the 5% of Accounts Receivables $7,440.00 (5% of 148,800) (b) 5% of accounts receivable but Allowance for Doubtful Accounts had a $1,390 debit balance 5% of Account Reeceivables = $7,440.00 Add: Debit Balance in Allowance for doubtfull debts $1,390.00 Net Balacne for Provision $8,830.00
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