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posledela
3 years ago
6

Sage, Inc. had net sales in 2017 of $1,432,200. At December 31, 2017, before adjusting entries, the balances in selected account

s were Accounts Receivable $325,000 debit, and Allowance for Doubtful Accounts $3,000 credit. If Sage estimates that 8% of its receivables will prove to be uncollectible.
Prepare the December 31, 2017, journal entry to record bad debt expense.
Business
1 answer:
Serjik [45]3 years ago
4 0

Answer:

Debit Bad debts expense $23,000

Credit Allowance for Doubtful Accounts $23,000

Explanation:

At December 31, 2017,

Bad debts is estimated:

8% x $325,000 = $26,000

Before adjusting, Allowance for Doubtful Accounts $3,000 credit. The company use aging method to estimate bad debts expense and Allowance for Doubtful Accounts. Bad debts expense amount will be record:

$26,000 - $3,000 = $23,000

The Journal entry:

Debit Bad debts expense $23,000

Credit Allowance for Doubtful Accounts $23,000

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Explanation:

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Sophia's family is growing, and she needs to buy a bigger car by financing it for five years. Why is it important for her to che
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To verify the accuracy of his rental history

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