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  1. business
  2. accounting
  3. a) your company records bad debt expense throughou

a) Your company records bad debt expense throughout the year based on credit sales, which...

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Accounting

a) Your company records bad debt expense throughout the year based on credit sales, which it estimates to be 1.5% of credit sales. The company then makes an adjustment at year end using the balance sheet approach. Total sales were $6 million ($3 million were credit sales). Record the journal entry for bad debt expense using the income statement approach:

b) In addition, your company wrote off $36,000 of accounts receivable during the year. Record the journal entry to write off these accounts receivable:

c) At year end, the company anticipates that $37,000 of accounts receivable will be uncollectible based on an aging schedule. The beginning balance of allowance for bad debts (before your entries above) was $25,000 and the company did not write off any accounts receivable during the year. Record the appropriate adjusting entry:

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