Journal entries for estimated bad debts

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Reference no: EM1314330

Journal entries for estimated bad debts provision.

(Computing Bad Debts and Preparing Journal Entries) The trial balance before adjustment of Reba McIntrye Inc. shows the following balances.

	Dr.	Cr.
Accounts Receivable		$90,000
Allowance for Doubtful Accounts	1,750
Sales (all on credit)		$680,000

Instructions

Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% gross accounts receivable and (b) 1% of net sales.

Reference no: EM1314330

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