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Question - Bridgeport Company reports the following financial information before adjustments.
Dr. Cr.
Accounts Receivable $169,500
Allowance for Doubtful Accounts $2,060
Sales
Revenue (all on credit) 841,800
Sales Returns and Allowances 54,450
Prepare the journal entry to record bad debt expense assuming Bridgeport Company estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but Allowance for Doubtful Accounts had a $1,500 debit balance.
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