Answer:
Trial Balance : Debit 15558 = 15558 Credit
Explanation:
b.) Noncollectable amount = $5300 * 35% = 1855
Entry: Dr bad debts expense 1855
Cr Allowance for bad debts 1855
(To record bad debts expense).
5300-1855= 3445 * 3% = $103 will not be collected.
Entry: Dr Bad debts expense 103
Cr Allowance for bad debts 103
( To record bad debts expense)
d.) Entry:
Dr Income tax expense 13600
Cr Income tax payable 13600
(To record accrued income tax expense).
Ledgers :
Bad debt expense = 1855+103 = 1958
Allowance for bad debts = 1855+103 = 1958
Income tax expense = 13600
income tax payable = 13600.
Trial balance:
_Dr__________________________________________________Cr____
Bad debt expense 1958 ----- 1958 Allowance for bad debts
Income tax expense 13600 ----- 13600 Allowance for bad debts
Total = 15558 ------- Total = 15558
