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7 September, 18:20

Allowance for Doubtful Accounts has a credit balance of $500 at the end of the year (before adjustment), and bad debt expense is estimated at 3% of net credit sales. If net credit sales are $300,000, the amount of the adjusting entry to record the estimated uncollectible accounts receivables is A. $8,500B. $8,500C. $9,000D. Cannot be determined

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  1. 7 September, 18:56
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    The correct answer is c) $9,000

    Explanation:

    If net credit sales are $300,000 and bad debt expense is estimated at 3% of net credit sales.

    $300,000 x 3% = $9,000

    or

    $300,000 x 0.03 = $9,000

    The amount of the adjusting entry to record the estimated uncollectible accounts receivables is $9,000
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