Reference no: EM132983159

Question - Providing for Doubtful Accounts - At the end of the current year, the accounts receivable account has a debit balance of $1,029,000 and sales for the year total $11,660,000.

1. The allowance account before adjustment has a debit balance of $13,900. Bad debt expense is estimated at 3/4 of 1% of sales.

2. The allowance account before adjustment has a debit balance of $13,900. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $44,500.

3. The allowance account before adjustment has a credit balance of $9,300. Bad debt expense is estimated at 1/4 of 1% of sales.

4. The allowance account before adjustment has a credit balance of $9,300. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $77,200.

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