The trial balance before adjustment of Reba Mclntyre Inc. shows the following balances.
Accounts Receivable $90,000
Allowance for doubtful Accounts 1,750
Sales (all on credit) $680,000
Prepare the entry for estimated bad debts assuming that the allowances is to provide for doubtful accounts on the basis of (a) 4% of gross accounts receivable and (b) 1% of net sales.
The question belongs to Accounting and it is about passing journal entries for estimated bad debts assuming allowances to provide for doubtful accounts.
Total Word Count 20