Answer:
Dec.31 Bad Debts Expense 27000
December 31 Balance Sheet Accounts Receivable 392400
Explanation:
Harris Company
Credit Sales for the current year $2700,000
Credit Losses = 1% of $ 2700,000= $ 27000
Add Allowance for Doubtful Accounts $ 30600 Cr
Required Adjustments $ 57,600 Cr
General Journal
Date Description Debit Credit
Dec.31 Bad Debts Expense 27000
Allowance for Doubtful Accounts 27000
December 31 Balance Sheet.
Accounts Receivable $450,000
Less: Allowance for Doubtful Accounts $57,600 ( 27000+ 30,600)
Accounts Receivable 392400
