Answer:
The computations are shown below:
Explanation:
The journal entry is as follows
1. Bad debt expense $9,330
To Allowance for doubtful debts $9,330
(Being the bad debt expense is recorded)
The computation is shown below:
= $311,000 × 3%
= $9,330
For recording this transaction, we debited the bad debt expense as it increases the expenses account while at the same time it reduces the account receivable so the allowance would be credited
2. And, the reporting of account receivable is shown below:
Accounts receivable $44,000
Less: Allowance for doubtful debts (9,330)
Net Accounts receivable 34,670
