Answer:
Journal entries
Explanation:
The journal entries are as follows
a. Bad debt expense $15,900 ($318,000 × 5%)
To Allowance for doubtful debts $15,900
(Being the bad debt expense is recorded)
b. Bad debt expense $37,080 ($318,000 + $918,000) × 5%0.
To Allowance for doubtful debts $37,080
(Being the bad debt expense is recorded)
c. Bad debt expense $18,240 {($143,000 × 8%) + $6,800}
To Allowance for doubtful debts $18,240
(Being the bad debt expense is recorded)
Since same entry are passed but the amount are different as in the first case the bad debt is calculated on credit sales. In the second case, it is calculated on total sales and on the third case it is calculated on account receivable after considering the debit balance
