Record bad debt expense assuming metlock company

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Reference no: EM132073871

Metlock Company reports the following financial information before adjustments.



Dr.


Cr.

Accounts Receivable
$140,500



Allowance for Doubtful Accounts



$3,730
Sales Revenue (all on credit)



816,400
Sales Returns and Allowances
53,360



Prepare the journal entry to record bad debt expense assuming Metlock Company estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but Allowance for Doubtful Accounts had a $1,540 debit balance. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Reference no: EM132073871

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