The trial balance before adjustment of Reba McIntyre Inc. shows the following balances.
Accounts Receivable $90,000
Allowance for Doubtful Accounts 1,750
Sales (all on credit) $680,000
(a) 4% of gross accounts receivable
The gross accounts receivable are 90,000 and 4% of this is 3,600. In percentage of accounts receivable method we take into consideration the balance ...
The solution explains how to prepare the adjusting entries for bad using the percentage of receivables method and the percentage of sales method