question archive Prior to recording the adjusting entry for bad de bt expense forthe year, the general ledger reflected the following information: Sales $ 2,600,000 Sales Discounts $ 12,000 Account Receivable (@ 12/31) $ 420,000 Sales Returns & Allowances $ 44,000 Allowance for Doubtful Accounts $ (1,450) (De bit) Required: a
Prior to recording the adjusting entry for bad de bt expense forthe year, the general ledger reflected the following information: Sales $ 2,600,000 Sales Discounts $ 12,000 Account Receivable (@ 12/31) $ 420,000 Sales Returns & Allowances $ 44,000 Allowance for Doubtful Accounts $ (1,450) (De bit) Required: a
Subject:AccountingPrice: Bought3
Prior to recording the adjusting entry for bad de bt expense forthe year, the general ledger reflected the following information:
Sales $ 2,600,000
Sales Discounts $ 12,000
Account Receivable (@ 12/31) $ 420,000
Sales Returns & Allowances $ 44,000
Allowance for Doubtful Accounts $ (1,450) (De bit)
Required:
a. Prepare the adjusting entry for bad debt expense, assuming it is based on 1.8% of net sales.
b. Prepare the adjusting entry for bad debt expense assuing it is based on 3% of the ending account receivable.
