Prepare the adjusting journal entry required at december

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Reference no: EM131971925

Problem

Rogala Foods, Inc. sells Oscar Mayer, Jell-O, Tassimo, and many other food brands. The company reported the following rounded amounts as of December 29, 2012 (all amounts in millions):

	Debits	Credits
Accounts Receivable	$
Allowance for Doubtful Accounts		35
Sales (assume all on credit)		18,700

Required:

Prepare the adjusting journal entry required at December 31, 2012, for recording Bad Debt Expense.

(i) Assume Rogala uses 1/4 of 1 percent of sales to estimate its Bad Debt Expense for the year.

(ii) Assume instead that Rogala uses the aging of accounts receivable method and estimates that $84 of its Accounts Receivable will be uncollectible.

Reference no: EM131971925

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