contestada

Oriole, Inc. had net sales in 2017 of $1,480,600. At December 31, 2017, before adjusting entries, the balances in selected accounts were Accounts Receivable $213,100 debit, and Allowance for Doubtful Accounts $3,720 credit. If Oriole estimates that 6% of its receivables will prove to be uncollectible.

Prepare the December 31, 2017, journal entry to record bad debt expense.

Respuesta :

saqib097

Answer:

Bad debt expense for Coolwear Inc. would be calculated by

= Uncollectible Accounts Receivable - Allowance for Doubtful Accounts

=[($213,100 X 6%) – $3,720]  = $9,066

The journal entry to record bad debt expense on December 31, 2017 would be,

Account Title                                                 Debit        Credit

Bad Debt Expense.............................................9,066

Allowance for Doubtful Accounts.......................................9,066

Otras preguntas