Question

Us Hele Stem Ancements US Intermediate Accounting. 17 Exercise 7-09 Your answer is partially correct. Try again The trial balance before adjustment of Windsor Inc. shows the following balances. Dr. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue (all on credit) $97,200 1,890 $734,400 Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4 of gross accounts receivable and from receive and Allowance for Doubtful Accounts has a $1,700 credit balance. ( ne entry is required, select "No Entry for the accountries and enter for the amounts Credit accounties are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit @ Bad Debt Expense 729540 Allowance for Doubtful U | T AMA 729540 (b) Bad Debt Expense 5588 5588 Allowance for Doubtful SHOW LIST OF ACCOUNTS A S ET AS Question Attempt 2 of 3 used By accessing this Question Assistance, you will learn while you earn points based on the point Potential Policy set by your instructor MacBook Air

Answer 1

Computation of bad debt expense: (a) Bad debt expense = ($97,200*4%) + Debit balance of allowance Bad debt expense = $3,888 + $1,890 Bad debt expense = $5,778 (b) Bad debt expense = ($97,200*5%) - Credit balance of allowance Bad debt expense = $4,860 - $1,700 Bad debt expense = $3,160 Credit Debit $ 5,778 No. Account Titles and Explanation (a) Bad debt expense Allowance for doubtful accounts (To record the bad debts expense) $ 5,778 S 3.160 (b) Bad debt expense Allowance for doubtful accounts (To record the bad debts expense)