Make adjusting journal entry to record bad debt expense

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Splish Brothers Inc. uses the percentage-of-receivables basis to record bad debt expense and concludes that 2% of accounts receivable will become uncollectible. Accounts receivable are $497,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $3,000.

Problem 1: Prepare the adjusting journal entry to record bad debt expense for the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Reference no: EM132679018

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