Ask Question
17 November, 07:56

On June 30 (the end of the period), Brown Company has a credit balance of $2,360 in Allowance for Doubtful Accounts. An evaluation of accounts receivable indicates that the proper balance should be $28,690. Journalize the appropriate adjusting entry.

+2
Answers (1)
  1. 17 November, 09:01
    0
    Dr Bad debt expense 26,330

    Cr Allowance for doubtful accounts 26,330

    Explanation:

    credit balance of allowance for doubtful accounts = $2,360

    the correct balance should be $28,690, so the account must be adjusted by $28,690 - $2,360 = $26,330

    Dr Bad debt expense 26,330

    Cr Allowance for doubtful accounts 26,330

    Allowance for doubtful accounts is a contra asset account with a credit balance that reduces the value of accounts receivable.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “On June 30 (the end of the period), Brown Company has a credit balance of $2,360 in Allowance for Doubtful Accounts. An evaluation of ...” 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