The Accounts Receivable balance for Lantana Company at December 31, 2017, was $2

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The Accounts Receivable balance for Lantana Company at December 31, 2017, was $28,000 During 2018, Lantana earned revenue of $455,000 on account and collected S326 000 on account Lantana wrote o" S 400 receivables as uncolectible Industry experience suggests that uncollectible accounts will amount to 4% of accounts receivable Read the requirements Requirement 1. Assume Lantana had an unadusted $1,900 credit balance in Allowance for Bad Debts at December 31, 2018. Journalize Lantana's December 31 bad debts expense using the percent-of-receivables method. (Record debits first, then credits. Select the explanation on the last line of 2018, adjustment to record the journal entry table.) Debit Credit Date Accounts and Explanation Dec 31 an unadjusted $1.600 debit balance in Allowance for Bad Debts at December 31, 2018 Journalize Lantana's December 31, . Requirement 2. Assume Lantana had hoose from any list or enter any number in the input telds and then continue to the next question Save for Later

Explanation / Answer

Adjusting entry :

No Accounts & explanation debit credit 1 Bad debt expense (151600*4%-1900) 4164     allowance for doubtful accounts 4164 (To record adjusting entry) 2 Bad debt expense (151600*4%+1600) 7664      allowance for doubtful accounts 7664 (To record adjusting entry)

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