Metlock, Inc. had net sales in 2020 of $1,430,300. At December 31, 2020, before adjusting entries, the balances in selected accounts were Accounts Receivable $239,200 debit, and Allowance for Doubtful Accounts $3,780 credit. Assume Metlock prepares an aging schedule that estimates total uncollectible accounts at $27,500. Prepare the entry to record bad debt expense

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Business

Omari Sims

3 June, 17:14

Metlock, Inc. had net sales in 2020 of $1,430,300. At December 31, 2020, before adjusting entries, the balances in selected accounts were Accounts Receivable $239,200 debit, and Allowance for Doubtful Accounts $3,780 credit. Assume Metlock prepares an aging schedule that estimates total uncollectible accounts at $27,500. Prepare the entry to record bad debt expense

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Esther Nicholson · Answer 1

The journal entry are as follows:

Bad debt expense A/c Dr. $23,720

To Allowance for doubtful accounts $23,720

(To record the bad debt expense)

Workings:

Bad debt expense:

= Total uncollectible accounts - Allowance for Doubtful Accounts (Credit balance)

= $27,500 - $3,780

= $23,720