Question

Blue Spruce Corp. has been in business several years. At the end of the current year, the unadjusted balances show:

Accounts Receivable		$318,500
Sales Revenue		2,049,800
Allowance for Doubtful Accounts		5,527

Bad debts are estimated to be 7% of receivables. Record adjustment to Allowance for Doubtful Accounts in a tabular summary. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Blue Spruce Corp. has been in business several years. At the end of the current year, the unadjusted balances show: Accounts Receivable Sales Revenue Allowance for Doubtful Accounts $318,500 2,049,800 5,527 Bad debts are estimated to be 7% of receivables. Record adjustment to Allowance for Doubtful Accounts in a tabular summary. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Assets = Liabilities + Stockholders' Equity Allowance for Retained Earnings Accounts Receivable doubtful accounts Common Stock Revenue Expense Beg. Bal. Adj. Bad debt expense Cost of goods sold Sales revenue Accounts receivable Sales returns & allowances e Textbook and Media List of Accounts

Answer 1

	Assets			=	Liabilities	+	Stockholder's equity
									Retained earnings
	Account receivable	-	Allowance for doubtful accounts	=		+	Common Stock	+	Revenue	-	expense
Beg Bal	318500		5527
Adj			16768								-16768

Adjustment amount = 318500*7%-5527 =