8.00 points Chipman software recently reported the following amounts in its unad

Question

8.00 points Chipman software recently reported the following amounts in its unadjusted trial balance at its year-end Debits S 3,700 Credits Accounts Receivable Allowance for Doubtful Accounts Sales (assume all on credit) S 40 51,000 Required: 182. Prepare the adjusting journal entry required for the year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to nearest whole dollar amount.) ) Assume Chipman uses 3/4 of 1 percent of sales to estimate its Bad Debt Expense for the year (i) Assume instead that Chipman uses the aging of accounts receivable method and estimates that $87 of its Accounts Receivable will be uncollectible. View transaction list 1 Record the adjusting entry for bad debts using percent/ credit sales method. ethod. 2 Record the adjusting entry for bad debts using the aging of accounts receivable method. Credit Note : ? journal entry has been entered Record entry Clear entry View general journal

Explanation / Answer

1 Bad debt expense 383 =51000*0.75%        Allowance for Doubtful accounts 383 2 Bad debt expense 47 =87-40        Allowance for Doubtful accounts 47 3 Bad debt expense 114 =87+27        Allowance for Doubtful accounts 114 4 Allowance for doubtful accounts 15         Accounts receivable 15

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