Journalize the adjusting entry at december for maxx company

Reference no: EM132779214

The ledger of Maxx Company at the end of the current year shown Accounts Receivable $170,000, Sales Revenue $1,200,000, and Sales Returns and Allowances $50,000.

Instructions

Problem (a) If allowance for Doubtful account has a credit balance of $3,500 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 10% of account receivable.

Problem (b) If allowance for Doubtful Accounts has a debit balance of $370 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 6% of accounts receivable.

Reference no: EM132779214

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