Discuss debit allowance account balance

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Reference no: EM131745917

A trial balance before adjustment included the following:

Debit Credit
Accounts receivable $133,000
Allowance for doubtful accounts
1,080
Sales
$471,000
Sales returns and allowances
5,200

Give journal entries assuming that the estimate of uncollectibles is determined by taking

(1) 4% of gross accounts receivable(Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

(2) 3% of gross accounts receivable and assume a $1,080 debit allowance account balance. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Reference no: EM131745917

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