ck my work mode This shows what is correct or incorrect for

ck my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate co At December 31, Folgeys Coffee Company reports the following results for its calendar year $904,000 304,000 Its year-end unadjusted trial balance includes the following items. $129,000 debit 5,400 debit Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (a) 3% of credits 1% of total sales and (c) 6% of year-end accounts receivable No b. KPrex 5 of 11 Next >

Solution

Journal entry :

No	accounts & Explanation	debit	credit
a	Bad debt expense (304000*3%)	9120
	Allowance for doubtful accounts		9120
b	Bad debt expense (304000+904000)*1%	12080
	Allowance for doubtful accounts		12080
c	Bad debt expense (129000*6%+5400)	13140
	Allowance for doubtful accounts		13140