Reference no: EM132489577

At the end of the current year, the accounts receivable account has a debit balance of $1,251,000 and sales for the year total $14,180,000.

Point a. The allowance account before adjustment has a credit balance of $16,900. Bad debt expense is estimated at 1/4 of 1% of sales.

Point b. The allowance account before adjustment has a credit balance of $16,900. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $54,100

Point c. The allowance account before adjustment has a debit balance of $9,100. Bad debt expense is estimated at 1/2 of 1% of sales.

Point d. The allowance account before adjustment has a debit balance of $9, 100. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $75,500.

Question 1: Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above.

a. 18,550

b. 37,200

C. 80,000

d. 84,600