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 $750,000; Allowance for debt expense is estimated at l/2 of 1% of net sales. Determine (a) the amount of the adjusting entry for bad debt expense, uswe THe Iwne goo 2. Doubtful Accounts has a debit balance of $6,200; and net sales for the year total $3,500,000. Bad srmrnane n ss ahor temeonr

Solution

Adjusting entry :

Date	account & explanation	debit	credit
	Bad debt expense (3500000*1%)*1/2	17500
	Allowance for doubtful accounts		17500
	(To record adjusting entry)