The following selected amounts are reported on the year-end unadjusted trial balance report for a company...

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The following selected amounts are reported on the year-end unadjusted trial balance report for a company that uses the perce

Multiple Choice Debit Bad Debts Expense $14,500; credit Allowance for Doubtful Accounts $14,500 Debit Bad Debts Expense $13,2

business accounting

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Answer 1

Answer #1

Under percentage of sales method, the adjustment entry should be equal to the percentage of uncollectible accounts on credit sales.

Credit sales = $2,150,000

Uncollectible accounts = 3% on credit sales

= 3% X $2,150,000

= $64,500

Bad debts should be debited and Allowance for doubtful accounts should be credited with $64,500.

5th option.

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Answer 2

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