Help Save Exercise 9-6 Percent of accounts receivable method LO PI3 At each cale
ID: 2556084 • Letter: H
Question
Help Save Exercise 9-6 Percent of accounts receivable method LO PI3 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 $131,500, and it estimates that 6% will be uncollectible. Prepare the has: adjusting entry to record bad debts expense for year 2017 under the assumption that the Allowance for Doubtful Accounts (a) a $2,236 credit balance before the adjustment (b) a $658 debit balance before the adjustment View transaction list 1 Prepare the adjusting entry to record bad debts expense for year 2017 under the assumption that the Allowance for Doubtful Accounts has a $2,236 credit balance before the adjustment. 7 under 5 credit 2 Prepare the adjusting entry to record bad debts expense for year 2017 under the assumption that the Allowance for Doubtful Accounts has a s658 debit balance before the adjustment. redit Prex 3 of 7 NextExplanation / Answer
Particulars
Dr
Cr
A.
Bad Debt Expense Dr
5654
Allowance for doubtful debts Cr
5654
(131500*6%) - 2236 = 5654
B
Bad Debt Expense Dr
8548
Allowance for doubtful debts Cr
8548
(131500*6%) + 658 = 8548
Particulars
Dr
Cr
A.
Bad Debt Expense Dr
5654
Allowance for doubtful debts Cr
5654
(131500*6%) - 2236 = 5654
B
Bad Debt Expense Dr
8548
Allowance for doubtful debts Cr
8548
(131500*6%) + 658 = 8548
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