Wiley Teal Mountain Inc. has been in business several years. At the end of the c

Question

Wiley

Teal Mountain Inc. has been in business several years. At the end of the current year, the unadjusted trial balance shows: Accounts Receivable Sales Revenue Allowance for Doubtful Accounts $281,200 Dr. 2,283,100 Cr 6,034 Cr Bad debts are estimated to be 8% of receivables. Prepare the entry to adjust Allowance for Doubtful Accounts. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Oreoli Bad Debt Expense 16460 Allowance for Doubtful Accounts 16460

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars Amount Accounts receivable            281,200.00 Allowance for doubtful accounts = 281,200*.08              22,496.00 Allowance for doubtful accounts Cr                6,034.00 More allowance for doubtful account required = 22496 - 6034              16,462.00 Dr Cr Bad Debts Expense DR              16,462.00 To Allowance for doubtful accounts              16,462.00

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