Prepare the adjusting journal entry to record bad debt

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Reference no: EM133433491

Cullumber Company uses the percentage-of-receivables basis to record bad debt expense.
Accounts receivable (ending balance)= $605,000 (debit)
Allowance for doubtful accounts (unadjusted)= 4.600 (debit)

The company estimates that 2% of accounts receivable will become uncollectible.

Question: Prepare the adjusting journal entry to record bad debt expense for the year. (Credit account titles a amount is entered. Do not indent manually.)

Reference no: EM133433491

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