What is the adjusting entry will Oriole Company make

Reference no: EM132826875

Problem - Oriole Company uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $280000 and credit sales are $2810000. Management estimates that 5% of accounts receivable will be uncollectible. What is the adjusting entry will Oriole Company make if the Allowance for Doubtful Accounts has a credit balance of $5600 before adjustment?

a. Bad Debt Expense 14000

Allowance for Doubtful Accounts 14000

b. Bad Debt Expense 8400

Allowance for Doubtful Accounts 8400

c. Bad Debt Expense 8400

Accounts Receivable 8400

d. Bad Debt Expense 14000

Accounts Receivable 14000

Reference no: EM132826875

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