of uncollectible accounts is .75%, the entry for bad debt expense is a debit to bad debt expense for $fill in the blank 2 2. When the percent of uncollectible accounts is 1%, the entry for bad debt expense is a debit to bad debt expense for $fill in the blank 4 3. When the unadjusted balance
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Use the Dynamic Exhibit to answer the following questions.
1. When the percent of uncollectible accounts is .75%, the entry for
2. When the percent of uncollectible accounts is 1%, the entry for bad debt expense is a debit to bad debt expense for $fill in the blank 4
3. When the unadjusted balance of Allowance for Doubtful Accounts is a debit of $2,100, and the percent of uncollectible accounts is .75%, the adjusted balance at December 31 after the entry for uncollectible accounts is made is $fill in the blank 5
4. When the unadjusted balance of Allowance for Doubtful Accounts is a credit of $3,250, and the percent of uncollectible accounts is .75%, the adjusted balance at December 31 after the entry for uncollectible accounts is made is $fill in the blank 6
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