Oriole, Inc. had net sales in 2017 of $1,480,600. At December 31, 2017, before adjusting entries, the balances in selected accounts were Accounts Receivable $213,100 debit, and Allowance for Doubtful Accounts $3,720 credit. If Oriole estimates that 6% of its receivables will prove to be uncollectible.

Prepare the December 31, 2017, journal entry to record bad debt expense.

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5 November, 05:16

Oriole, Inc. had net sales in 2017 of $1,480,600. At December 31, 2017, before adjusting entries, the balances in selected accounts were Accounts Receivable $213,100 debit, and Allowance for Doubtful Accounts $3,720 credit. If Oriole estimates that 6% of its receivables will prove to be uncollectible.

Prepare the December 31, 2017, journal entry to record bad debt expense.

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Charlie Ballard · Answer 1

Bad debt expense for Coolwear Inc. would be calculated by

= Uncollectible Accounts Receivable - Allowance for Doubtful Accounts

=[ ($213,100 X 6%) - $3,720] = $9,066

The journal entry to record bad debt expense on December 31, 2017 would be,

Account Title Debit Credit

Bad Debt Expense ... 9,066

Allowance for Doubtful Accounts ... 9,066