2. Al Harith Company reports the following financial information before adjustments: RO Account Receivables Allowance for Doubtful Accounts Sales (all on credit) Cash Sales Sales Return and Allowances 250,000 5000 800,000 100,000 100,000 Prepare the journal entry to record Bad Debt Expense assuming Al Harith Company: estimates bad debts at 2% of net sales estimates 5% of account receivables

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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2. Al Harith Company reports the following financial information before adjustments:
RO
Account Receivables
Allowance for Doubtful Accounts
Sales (all on credit)
Cash Sales
Sales Return and Allowances
250,000
5000
800,000
100,000
100,000
Prepare the journal entry to record Bad Debt Expense assuming Al Harith
Company: estimates bad debts at 2% of net sales estimates 5% of account
receivables
Transcribed Image Text:2. Al Harith Company reports the following financial information before adjustments: RO Account Receivables Allowance for Doubtful Accounts Sales (all on credit) Cash Sales Sales Return and Allowances 250,000 5000 800,000 100,000 100,000 Prepare the journal entry to record Bad Debt Expense assuming Al Harith Company: estimates bad debts at 2% of net sales estimates 5% of account receivables
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