Answer:
a.
Date Account Title Debit Credit
Dec, 31 Bad debt expense $15,700
Allowance for doubtful expense account $15,700
<u>Working</u>
= 5% * 314,000
= $15,700
b.
Date Account Title Debit Credit
Dec, 31 Bad debt expense $36,840
Allowance for doubtful expense account $36,840
<u>Working </u>
= 3% * (Cash sales + Credit sales)
= 3% * (914,000 + 314,000)
= $36,840
c.
Date Account Title Debit Credit
Dec, 31 Bad debt expense $17,520
Allowance for doubtful expense account $17,520
<u>Working</u>
= (8% * Year end accounts receivable) + Debit balance for Allowance for doubtful account
= (8% * 139,000) + 6,400
= $17,520
