Answer:
A)
bad debt expense 9,000 debit
allowace for doubtful account 9,000 credit
------to record bad debt expense ---
B)
bad debt expense 9,000 debit
allowace for doubtful account 9,000 credit
------to record bad debt expense ---
C)
bad debt expense 12,500 debit
allowace for doubtful account 12,500 credit
------to record bad debt expense ---
Explanation:
a) 3% of credit sales
300,000 x 3% = 9,000
full value
b) 1% total sales
900,000 x 1% = 9,000
c)
125,000 x 6% = 7,500
we adjust to leave the year-end allowance at this value
allowance
<u>debit credit</u>
5,000
XXXX
7,500
the allowance wil be 7,500 + 5,000 = 12,500
