Question

The trial balance before adjustment of Reba McIntyre Inc. showsthe following balances.

 

 

Dr.

 

Cr.

Accounts Receivable

 

$91,200

 

 

Allowance for Doubtful Accounts

 

2,320

 

 

Sales Revenue (all on credit)

 

 

 

$729,000

 

Give the entry for estimated bad debts assuming that the allowanceis to provide for doubtful accounts on the basis of (a) 4% of grossaccounts receivable and (b) 1% of net sales.