Brief Exercise 8-5 Bonita ndustries uses the percentage o receivables basis to r

Question

Brief Exercise 8-5 Bonita ndustries uses the percentage o receivables basis to record bad debt expense and concludes hat 4% of accounts receivable receivable are $384,400 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,908 become uncollectible. Accounts (a) (b) Prepare the adjusting journal entry to record bad debt expense for the year. If the allowance for doubtful accounts had a debit balance of $954 instead of a credit balance of $2,908, prepare the adjusting journal entry for bad debt expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit

Explanation / Answer

Answer to Part A

Entry

Answer to part b

Entry

Particulars Amt Provision to be made
(384400 x 4%)            15,376.00 Less: provison already made              2,908.00 Bad Debt Expense            12,468.00

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