Question
The trial balance before adjustment of Reba McIntyre Inc. shows the following balances.
Dr.
Cr.
Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 5% of gross accounts receivable and (b) 2% of net sales
|
|
|
Dr. |
|
Cr. |
|
Accounts Receivable |
|
$93,600 |
|
|
|
Allowance for Doubtful Accounts |
|
2,380 |
|
|
|
Sales Revenue (all on credit) |
|
|
|
$689,800 |
