Homework Answers
a) Bad debt expense = 800000*10% = 80000
b) Bad debt expense = 90000*10%-5900 = 3100
c) Journal entry
| Date | account and explanation | Debit | Credit |
| bad debt expense | 80000 | ||
| Allowance for doubtful accounts | 80000 | ||
d) Journal entry
| Date | account and explanation | Debit | Credit |
| Allowance for doubtful accounts | 1000 | ||
| Account receivable | 1000 |
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