Question

The ledger of the RamirezCompany at the end of the current year shows Accounts Receivable of$200,000.

Instructions

  1. If Allowance for Doubtful Accountshas a credit balance of $3,000 in the trial balance and bad debtsare expected to be 8% of accounts receivable, journalize theadjusting entry for end of the period. (Show allcalculations.)
  2. If Allowance for Doubtful Accountshas a debit balance of $3,000 in the trial balance and bad debtsare expected to be 8% of accounts receivable, journalize theadjusting entry for end of the period. (Show allcalculations.)