Ask Question
18 December, 08:52

The Allowance for Doubtful Accounts account has a year-end credit balance, prior to adjustment of $500. The bad debts are estimated at 7% of $60,000, the outstanding accounts receivable. After the appropriate adjusting entry to recognize the bad debt expense, what will be the balance of the Allowance for Doubtful Accounts?

+3
Answers (1)
  1. 18 December, 12:39
    0
    Estimated balance of Doubtful Account after adjusting entry = $4,200

    Explanation:

    Given:

    The credit balance of Doubtful Account = $500

    Computation of estimated balance of Doubtful Account after adjusting entry:

    Estimated balance of Doubtful Account after adjusting entry = 7% of $60,000

    Estimated balance of Doubtful Account after adjusting entry = $4,200

    After adjusting entry, Total amount credited in Allowance for Doubtful Accounts is $4,200
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The Allowance for Doubtful Accounts account has a year-end credit balance, prior to adjustment of $500. The bad debts are estimated at 7% ...” 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