Ask Question
26 January, 21:55

Broadway Company reported a balance in Accounts Receivable of $50,000 and a zero balance in the Allowance for Doubtful Accounts. The company's aging of accounts receivable determined $12,200 to be uncollectible. Prepare the end-of-period adjusting entry to record bad debt expense.

+1
Answers (1)
  1. 26 January, 23:44
    0
    Adjusting Journal

    Doubtful Debt $ 12200 (debit)

    Accounts Receivable $12200 (credit)

    Explanation:

    When an amount is noncollectable from an Account Receivable,

    The Assets of Accounts Receivable will decline as no future economic benefits are expected to be collected on the amount

    The Expense Account - Doubtful Debts must be recognized to record the decrease in economic benefit which will decrease shareholders equity
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Broadway Company reported a balance in Accounts Receivable of $50,000 and a zero balance in the Allowance for Doubtful Accounts. The ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers