Question

At December 31, Folgeys Coffee Company reports the following results for its calendar year. Cash sales Credit sales $ 917,000 317,000 Its year-end unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $142,080 debit 6,780 debit Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (1) 4% of credit sales. (2) 2% of total sales and (3) 7% of year-end accounts receivable View transaction list Journal entry worksheet A B C Record Bad Debts Expense assuming uncollectibles are estimated to be 4% of credit sales.

Answer 1

) 4% of credit sales Bad Deth Ale or 12680 To Allowance for doutful accounts ( 317000* 4%) 12680 » 2% of total sales Bad debt al or [ (917000 +317000)*2%) 24680 'Cashsales ceditsales. To Allowance for doubtful debts 24680 3) 7% of yeou end Accounts Recebrable Bad debh ale Dr 9940 ( 142,000 + m ) x7% To Allowance for doubtful debts. 9940 & Allowance for doubtful accounts Bad dobts Alo Do 6700 To Allowance for doubtful deth 6700