question archive Bestway, inc had credit sales of $142,000 for the period
Bestway, inc had credit sales of $142,000 for the period
Subject:AccountingPrice:2.86 Bought9
Bestway, inc had credit sales of $142,000 for the period. the balance in allowance for doubtful accounts is a debit of $643. if Bestway estimates that 2% of credit sales will be uncollectible, what is the required journal entry to record estimated uncollectible accounts?
I came with $2840.00 for the 2% , but I also see someone also came up with $139.16 I don't know how they got that or why and also I can't figure out how to do journal entry in the book all the ways look right under the section of allowance method for uncollectible accounts.
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Provision or Allowance for estimated uncollectible accounts made @ 2% of $1,42,000
Step-by-step explanation
Dr. Bad Debt Expense $,2840
Cr. Allowance for uncollectible Accounts $2,840
(Being Provision or Allowance for estimated uncollectible accounts made @ 2% of $1,42,000)
Since Allowance for estimated uncollectible accounts already has the debit balance of $643, So provision for the period over the periodic sales = 142000*2% =$2840
