Question

Indicate the accounts affected and enter decreases to account categories with a minus sign. a. At the end of the period, bad debt expense is estimated to be $17,300. b. During the period, bad debts are written off in the amount of $7,100.

Answer 1

Answer:

The journal entries are given;

Explanation:

a. Bad Debt Expense   Dr.$17,300

   Allowance for Doubtful Accounts Cr.$17,300

b. Allowance for Doubtful Accounts Dr.$7,100

   Accounts Receivable                      Cr.$7,100

With Bad Debt Expense ,the retained earnings will be decreased by ($17,300)

with direct written off,the accounts receivables will be reduced by ($7,100) in balance sheet.