Sama company has the following unadjusted account balances at December 31, 2021, Total Sales of $720,000, Accounts Receivable of $205,000 and the allowance was estimated as 3 5% of the total Account Receivable. The Allowance for Doubtful Accounts had a credit balance of $2,400, before the estimate was made. Required: Prepare the adjusting journal entry to record bad debts expense for 2021. Answer in the following format (Note: This is just an example and is not related to the question] Jan 1 Dr. Cash 120 Cr Owner capital 120

Sama company has the following unadjusted account balances at December 31, 2021, Total Sales of $720,000, Accounts Receivable of $205,000 and the allowance was estimated as 3 5% of the total Account Receivable. The Allowance for Doubtful Accounts had a credit balance of $2,400, before the estimate was made. Required: Prepare the adjusting journal entry to record bad debts expense for 2021. Answer in the following format (Note: This is just an example and is not related to the question] Jan 1 Dr. Cash 120 Cr Owner capital 120

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 6MC: Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts...

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