At each calendar year-end mazie supply co. uses the percent of account receivable method to estimate bad debits. On December31,2013 it has outstanding accounts receivable of 55000 and estimated that 2% will be uncollectible . prepare the adjusting entry to record bad credit expense for the year 2013 under the assumption that the Allowance for doubtful accounts has (a) a 415 credit balance before the adjustment and (b) a 291 debit balance before the adjustment.© BrainMass Inc. brainmass.com October 25, 2018, 8:41 am ad1c9bdddf
Your tutorial is attached showing how this method works and showing the computations (click in cells to see).
Essential Features of the Allowance Method of Accounting
What are the essential features of the allowance method of accounting for bad debts?View Full Posting Details