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