At the end of the current year Accounts Receivable has a bal

At the end of the current year, Accounts Receivable has a balance of $412,600 Allowance for Doubtful Accounts has a credit balance of $8,270; and net sales for the year total $985,680. Bad debt expense is estimated at 1.25% of net sales.

Determine the amount of the adjusting entry for uncollectible accounts:

Estimated bad debt expense = 1.25% x $985680 = $12321

Adjusting entry:

Account Titles and Explanation	Debit	Credit
Bad debt expense	12321
Allowance for doubtful accounts		12321
(To record bad debt expense)

At the end of the current year, Accounts Receivable has a balance of $412,600 Allowance for Doubtful Accounts has a credit balance of $8,270; and net sales for

At the end of the current year Accounts Receivable has a bal

Solution

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