Allowance for Doubtful Accounts
Not what you're looking for?
A company has $110,000 Accounts Receivable, $840,000 Sales and $40,000 Sales and Return Allowances.
How would I journalize the following for December 31:
Allowance for Doubtful Account credit balance of $2500 in the trial balance, assuming bad debts are 1% of net sales and 10% of accounts receivable.
Purchase this Solution
Solution Summary
The solution explains the calculation of bad debt expense under percentage of sales and percentage of receivables method and the related journal entry.
Solution Preview
The sales are $840,000 and Sales Returns and Alloawances are $40,000. The net sales are $800,000.
1. Bad Debts are 1% of credit sales
The amount would be 800,000X1% = $8,000
The journal entry would be
Bad Debt ...
Purchase this Solution
Free BrainMass Quizzes
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Learning Lean
This quiz will help you understand the basic concepts of Lean.