Question

Cheyenne Corp. uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $170000 and credit sales are $1710000. Management estimates that 5% of accounts receivable will be uncollectible. What adjusting entry will Cheyenne Corp. make if the Allowance for Doubtful Accounts has a credit balance of $3400 before adjustment? Bad Debt Expense 8500 Allowance for Doubtful Accounts 8500 Bad Debt Expense 5100 Accounts Receivable 5100 Bad Debt Expense 5100 Allowance for Doubtful Accounts 5100 Bad Debt Expense 8500 Accounts Receivable 8500

Answer 1

Answer:

See below

Explanation:

Given the above information, the adjusting entry for Chynne will be;