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Anna007 [38]
3 years ago
10

Skysong, inc. uses the percentage of receivables method for recording bad debts expense. the accounts receivable balance is $140

000 and credit sales are $1410000. management estimates that 3% of accounts receivable will be uncollectible. what adjusting entry will skysong, inc. make if the allowance for doubtful accounts has a credit balance of $1400 before adjustment?
Business
1 answer:
kompoz [17]3 years ago
3 0
<span>Bad debt expense would be $140,000 multiplied by 3% minus the credit balance of allowance for doubtful accounts of $1,400 that is $2,800. The journal entry will be a debit to bad debt expense worth $2800 and a credit to allowance for doubtful accounts worth $2800</span>
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3 0
3 years ago
On January 1, Power House Co. prepaid the annual rent of $10,140. Prepare the journal entry to record this transaction.
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Answer and Explanation:

The journal entry to record the given transaction is shown below:

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3 years ago
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