Homework Answers
percentage estimated as uncollectible = 8%
Accounts receivables = $295 million
Existing balance of Allowance for doubtful accounts = $15 million
Bad debt expense = Accounts receivables x percentage estimated as uncollectible - Existing balance of Allowance for doubtful accounts
= 295 x 8% - 15
= 23.6 - 15
= $8.6
Journal
|
Dec. 31, 2007 |
Bad debt expense |
8.6 | |
|
Allowance for doubtful accounts |
8.6 |
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