Exercise 7-13 (Algo) Percent of accounts receivable method LO P3 Mazie Supply Company uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $86,500, and it estimates that 3% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has: (a) a $1,471 credit balance before the adjustment. (b) a $433 debit balance before the adjustment.
Exercise 7-13 (Algo) Percent of accounts receivable method LO P3 Mazie Supply Company uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $86,500, and it estimates that 3% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has: (a) a $1,471 credit balance before the adjustment. (b) a $433 debit balance before the adjustment.
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 6PB: Ink Records recorded $2,333,898 in credit sales for the year and $1,466,990 in accounts receivable....
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![Exercise 7-13 (Algo) Percent of accounts receivable method LO P3
Mazie Supply Company uses the percent of accounts receivable method. On December 31, it has outstanding accounts
receivable of $86,500, and it estimates that 3% will be uncollectible.
Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful
Accounts has:
(a) a $1,471 credit balance before the adjustment.
(b) a $433 debit balance before the adjustment.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa26fe21e-b0aa-4bd3-9c72-fea4d1637db3%2F29d0dbd3-15c8-4d40-993b-06f40c19abce%2Fr4o6cns_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 7-13 (Algo) Percent of accounts receivable method LO P3
Mazie Supply Company uses the percent of accounts receivable method. On December 31, it has outstanding accounts
receivable of $86,500, and it estimates that 3% will be uncollectible.
Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful
Accounts has:
(a) a $1,471 credit balance before the adjustment.
(b) a $433 debit balance before the adjustment.
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Step 1: Introduce Adjusting Entry & Allowance for doubtful accounts
VIEWStep 2: Bad Debt Expense if Allowance for Doubtful Account has $1,471 Credit Balance Before the Adjustment
VIEWStep 3: Bad Debt Expense if Allowance for Doubtful Account has $433 Debit Balance Before the Adjustment
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