Your answer is partially correct. Try again. Flounder Company reports the follow

Question

Your answer is partially correct. Try again. Flounder Company reports the following financial information before adjustments Dr. . Accounts Receivable Allowance for Doubtful Accounts Sales Revenue (all on credit) Sales Returns and Allowances $155,400 $3,890 800,700 50,330 Prepare the journal entry to record bad debt expense assuming Flounder Company estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but Allowance for Doubtful Accounts had a $1,470 debit balance. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (a) Bad Debt Expense Allowance for Doubtful Accounts (b) Bad Debt Expense Allowance for Doubtful Accounts

Explanation / Answer

S. no. Accounts title Dr in $ Cr in $ A. Bad debts expense Dr. 2,326 Allowance for Doubtful debts Cr. 2,326 (4% of accounts receivable i.e. $ 155,400 less Old balance of allowance i.e.$ 3890) B. Bad debts expense Dr. 7,686 Allowance for Doubtful debts Cr. 7,686 (4% of accounts receivable i.e. $ 155,400 Add Old balance of allowance i.e.$ 1470)

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.