Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% of gross accounts receivable and (b) 5% of gross accounts receivable and Allowance for Doubtful Accounts has a $1,700 credit balance.

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Cade

2 January, 08:39

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Answers (1)

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Virginia Fitzgerald · Answer 1

(a) estimated bad debts is $42,500

(b) estimated bad debts is $34,000

Explanation:

(a) 1,700/4% = 42,500

(b) 1,700/5%=34,000