ACCOUNTING PROBLEM SOLVE The ledger of Concord Corporation at the end of the cur

Question

ACCOUNTING PROBLEM SOLVE The ledger of Concord Corporation at the end of the current year shows Accounts Receivable $75,800; Credit Sales $818,100; and Sales Returns and Allowances 39,600 (a) If Concord Corporation uses the direct write-off method to account for uncollectible accounts journalize the adjusting entry at December 31, assuming Concord Corporation determines that Matisse's $812 balance is uncollectible. (b) If Allowance for Doubtful Accounts has a credit balance of $1,060 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 10% of accounts receivable (c) If Allowance for Doubtful Accounts has a debit balance of $530 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 7% of accounts receivable No. Account Titles and Explanation Debit Credit

Explanation / Answer

a Bad debts expense 812          Accounts Receivable 812 b Bad debts expense 6520 =(75800*10%)-1060          Allowance for Doubtful accounts 6520 c Bad debts expense 5836 =(75800*7%)+530          Allowance for Doubtful accounts 5836

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