Prepare the adjusting journal entry

Reference no: EM131024850

Hirdt Co. uses the percentage-of-receivables basis to record bad debt expense and concludes that 2% of accounts receivable will become uncollectible. Accounts receivable are $400,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,800.

(a) Prepare the adjusting journal entry to record bad debt expense for the year.

(b) If the allowance for doubtful accounts had a debit balance of $900 instead of a credit balance of $2,800, prepare the adjusting journal entry for bad debt expense.

Reference no: EM131024850

Questions Cloud

How long it takes for tank 2 to have a salt concentration : Write a matrix system of equations for the amounts and of salt in the two tanks after t minutes. Solve the system using matrix methods. Calculate how long it takes for tank 2 to have a salt concentration of 1 pound per gallon.

Current number of employees : As an administrator, you need to assess this situation: How would you determine if there was a true need for another receptionist? Do you need to reinstate the position or can you retrain the current number of employees? Why?

Implementing an activity-based costing : Hickory Company manufactures two products-14,000 units of Product Y and 6,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that al..

Company must produce 1000 pounds of the drug : The cost per pound of each chemical and amount of each active ingredient in 1 pound of each chemical are given above. It is necessary that at least 100 pound of chemical 2 be used

Prepare the adjusting journal entry : Prepare the adjusting journal entry to record bad debt expense for the year. If the allowance for doubtful accounts had a debit balance of $900 instead of a credit balance of $2,800, prepare the adjusting journal entry for bad debt expense.

What are the four dimensions of hr change : Post a 200 or more word response to the following in your own words: What are the four dimensions of HR Change and how does each interact with the others? Provide examples of each of the changes.

Implement an android application with the requirements : Design and implement an Android application with the requirements - Just one database that contains all data for the list, list items, widgets, text fields and activities mentioned in the above requirements.

Determining the cost of the merchandise : Sombrero Co. issues a credit memo for $13,300 for merchandise returned and subsequently receives the amount due within the discount period. The cost of the merchandise returned is $8,000.

How strongly do the data support the researcher expectation : The accompanying table shows the weights (mg) of the larvae after seven days of growth.39 (Assume that the data are normally distributed.) How strongly do the data support the researcher's expectation? Use a test at the 5% significance level. Let ..

User Account

All Pages