Explore BrainMass

Percent of accounts receivable method

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 July 17, 2018, 12:19 am ad1c9bdddf

Solution Summary

Your tutorial is attached showing how this method works and showing the computations (click in cells to see).