can some one please help me fill out transaction A and B please Thank you At eac

Question

can some one please help me fill out transaction A and B please

Thank you

At each calendar year-end, Mazie Supply Co. uses the percent of accounts receivable method to estimate bad debts. On December 31, 2017, it has outstanding accounts receivable of $55,000, and it estimates that 2% will be uncollectible. Prepare the adjusting entry to record bad debts expense for year 2017 under the assumption that the Allowance for Doubtful Accounts has (a) a $415 credit balance before the adjustment. (b) a $291 debit balance before the adjustment. View transaction list Journal entry worksheet Prepare the adjusting entry to record bad debts expense for year 2017 under the assumption that the Allowance for Doubtful Accounts has a $415 credit balance before the adjustment. Note: Enter debits before credits. Transaction General Journal Debit Credit

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount Outstanding accounts receivable               55,000.00 % uncollectible 2% Allowance for doubtful accounts required = 55000 * 2%                 1,100.00 a) Credit balance of 415 before adj Bad Debt Expense Dr                     685.00 To Allowance for doubtful accounts                   685.00 (1100 - 415) b) Debit balance of 291 before adj Bad Debt Expense Dr                 1,391.00 To Allowance for doubtful accounts                1,391.00 (1100 - (-291))

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