XYZ Co.'s trial balance before adjusting entries shows the following balances: Debits Credits Accounts Receivable ...
XYZ Co.'s trial balance before adjusting entries shows the following balances:
| Debits | Credits | |
|---|---|---|
| Accounts Receivable | $180,000 | |
| Allowance for Doubtful Accounts | 3,500 | |
| Sales (all on credit) | $1,000,000 |
What is the entry to bad debt expense, assuming that the allowance
is to provide for doubtful accounts on the basis of 1% of net
sales?
Select one:
a. $13,500 credit
b. $1,000 credit
c. $10,000 credit
d. $100,000 credit
Homework Answers
Allowance for Doubtful Accounts = Sales (all on credit) * 1%
= $1,000,000 * 1% = $10,000
Bad debt expense = $10000 + 3500 = $13,500 Credit
Option a. is correct answer.
Add Answer to:
XYZ Co.'s trial balance before adjusting entries shows the
following balances:
Debits
Credits
Accounts Receivable
...
XYZ Co.'s trial balance before adjusting entries shows the following balances: Debits Credits Accounts Receivable ...
XYZ Co.'s trial balance before adjusting entries shows the following balances: Debits Credits Accounts Receivable $180,000 Allowance for Doubtful Accounts 3,500 Sales (all on credit) $1,000,000 What is the entry to bad debt expense, assuming that the allowance is to provide for doubtful accounts on the basis of 5% of gross accounts receivable? Select one: a. $9,000 credit b. $12,500 credit c. $9,000 debit d. $3,500 credit
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