Homework Answers
a)
Bad debts expense Dr. $6,680
Allowance for doubtful accounts $6,680
(To record allowance for credit losses)
Working :- Bad debt expense = ( 303000*1% + 42000*5% + 17000*15% + 8000*40% ) - 4,200
= 10,880 - 4,200
= $6,680
b)
| Current assets :- | |
| Accounts receivable | $370,000 |
| Less :- Allowance for doubtful accounts | ($10,880) |
| $359,120 | |
| Current Liabilities :- | |
| Customers' Over payments | $5,100 |
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