Tanning company analyzes it\'s receivables to estimate bad debt expense the acco

Question

Tanning company analyzes it's receivables to estimate bad debt expense the accounts receivable balance is three $90,000 and credit sales are $1,300,000 and aging of accounts receivable shows that approximately 5% of the outstanding receivables will be uncollectible what adjusting entry will tanning company make if the allowance for the doubtful accounts has a credit balance of $2500 before adjustment Tanning company analyzes it's receivables to estimate bad debt expense the accounts receivable balance is three $90,000 and credit sales are $1,300,000 and aging of accounts receivable shows that approximately 5% of the outstanding receivables will be uncollectible what adjusting entry will tanning company make if the allowance for the doubtful accounts has a credit balance of $2500 before adjustment

Explanation / Answer

estimated uncollectible amount = 90000 * .05 =4500

Amount of allowance to made =4500- 2500 = 2000

entr:

Bad debt expense      debit     2000

Allowance for doubtful account credit 2000

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.