At year end, the balance in A/R is $525,000, of which 4% is estimated to be unco
ID: 2608247 • Letter: A
Question
At year end, the balance in A/R is $525,000, of which 4% is estimated to be uncollectible. The Allowance for Doubtful Accounts has a debit balance of $7,000 before adjustment. The journal entry necessary to record bad debt expense is:
debit Bad Debt Expense for $21,000; credit Allowance for Doubtful Accounts for $21,000
debit Allowance for Doubtful Accounts for $21,000; credit Bad Debt Expense for $21,000
debit Allowance for Doubtful Accounts for $7,000; credit Bad Debt Expense for $7,000
debit Allowance for Doubtful Accounts for $28,000; credit Bad Debt Expense for $28,000
debit Bad Debt Expense for $7,000; credit Allowance for Doubtful Accounts for $7,000
debit Bad Debt Expense for $28,000; credit Allowance for Doubtful Accounts for $28,000
debit Bad Debt Expense for $21,000; credit Allowance for Doubtful Accounts for $21,000
debit Allowance for Doubtful Accounts for $21,000; credit Bad Debt Expense for $21,000
debit Allowance for Doubtful Accounts for $7,000; credit Bad Debt Expense for $7,000
debit Allowance for Doubtful Accounts for $28,000; credit Bad Debt Expense for $28,000
debit Bad Debt Expense for $7,000; credit Allowance for Doubtful Accounts for $7,000
debit Bad Debt Expense for $28,000; credit Allowance for Doubtful Accounts for $28,000
Explanation / Answer
Journal entry :
so answer is debit Bad Debt Expense for $28,000; credit Allowance for Doubtful Accounts for $28,000
Date accounts & explanation debit credit Bad debts expenses a/c (525000*4%+7000) 28000 Allowance for doubtful accounts 28000 (To record bad debt expenses)Related Questions
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