Question

Question 6 View Policies Current Attempt in Progress Answer the following independent questions. (a) Pharoah, Inc. had net sales in 2017 of $1,410,600. At December 31, 2017, before adjusting entries, the balances in selected accounts were Accounts Receivable $384,800 debit, and Allowance for Doubtful Accounts $1,814 debit. Assume that 11% of accounts receivable will prove to be uncollectible. Prepare the entry to record bad debt expense. (If no entry is required, select "No Entry" for the account titles and enter 0for the amounts Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Credit Account Titles and Explanation Debit Date Dec. 31, 2017

Answer 1

Ans.	Date	General Journal	Debit	Credit
	31-Dec.-17	Bad debts expense	$44,142
		Allowance for doubtful accounts		$44,142
		(Adjusting entry made )
	*Estimated balance of allowance for doubtful accounts = Accounts receivables * Un collectibles percentages
		$384,800 * 11%
		$42,328
	*Bad debts expenses = Estimated balance + Un adjusted debit balance
		$42,328 + $1,814
		$44,142