Answer:
Journal entries are shown below:
Explanation:
The journal entries are as follows
a. Bad debt expense $1,400
To Account receivable $1,400
(Being the bad debt expense is recorded)
b. Bad debt expense $8,900
To Allowance for doubtful accounts $8,900
(Being the bad debt expense is recorded)
The computation is shown below:
= $110,000 × 10% - $2,100
= $11,000 - $2,100
= $8,900
c. Bad debt expense $6,800
To Allowance for doubtful accounts $6,800
(Being the bad debt expense is recorded)
The computation is shown below:
= $110,000 × 6% + $200
= $6,600 + $200
= $6,800
