At each calendar year-end, Mazie Supply Co. uses the percent of accounts receiva

Question

At each calendar year-end, Mazie Supply Co. uses the percent of accounts receivable method to estimate bad debts On December 31, 2017, it has outstanding accounts receivable of $49,500, and it estimates that 5% 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 (a) a $842 credit balance before the adjustment. (b) a $248 debit balance before the adjustment. View transaction list Prepare the adjusting entry to record bad debts expense for year 2017 under the assumption that the Allowance for Doubtful Accounts has a $842 credit balance before the adjustment. pense ance efore 2 Prepare the adjusting entry to record bad debts expense for year 2017 under the assumption that the Allowance for Doubtful Accounts has a $248 debit balance before the adjustment. Credit Note : journal entry has been entered Record entry Clear entry View general journal

Explanation / Answer

the following is the required entry:

date account title debit credit dec 31,2017 Bad debts expense a/c $1,633 ..........To Allowances for doubtful accounts a/c $1,633 (amount = $49,500 *5% =>$2,475 less $842 already in balance) 2. dec 31,2017 Bad debt expense a/c $2,723 ...........To Allowances for doubtful accounts a/c $2,723 (amount = $49,500 *5% =.$2,475 + $248 =>$2,723)

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