Metlock has been in business several years. At the end of the current year, the unadjusted trial balance shows: Accounts Receivable $300,000 Dr. Sales Revenue 2,321,700 Cr. Allowance for Doubtful Accounts 5,355 Cr. Bad debts are estimated to be 8% of receivables. Prepare the entry to adjust Allowance for Doubtful Accounts. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Respuesta :

Answer:

the answer is given below;

Explanation:

Allowance for Doubtful Accounts-opening             ($5,355)

Allowance for doubtful accounts-closing    ($300,000*8%) $24,000    

Bad Debt Expense                                                          $18,645

Bad Debt Expense Dr.$18,645

Allowance for Doubtful Accounts Cr.$18,645