FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Providing for Doubtful Accounts

At the end of the current year, the accounts receivable account has a debit balance of $1,051,000 and sales for the year total $11,910,000.

The allowance account before adjustment has a credit balance of $14,200. Bad debt expense is estimated at 1/2 of 1% of sales.
The allowance account before adjustment has a credit balance of $14,200. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $45,400.
The allowance account before adjustment has a debit balance of $8,600. Bad debt expense is estimated at 1/4 of 1% of sales.
The allowance account before adjustment has a debit balance of $8,600. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $71,400.

Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above.

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