80.2K

Verified Solution

Link Copied!

Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $69,500, and it estimates that 4% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has:

1. (a) a $1,182 credit balance before the adjustment.

2. (b) a $348 debit balance before the adjustment.

General Journal

• Accounts payableCredit Card cos.
• Accounts receivableCredit Card cos.
• Allowance for doubtful accounts
• Bad debts expense
• Cash
• Cost of goods sold
• Credit card expense
• Factoring fee expense
• Interest receivable
• Interest revenue
• Merchandise inventory
• Notes payable
• Notes receivable
• Prepaid insurance
• Sales
• Sales discounts

Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $69,500, and it estimates that 4% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has: (a) a $1,182 credit balance before the adjustment (b) a $348 debit balance before the adjustment. View transaction list Journal entry worksheet Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has a $1,182 credit balance before the adjustment. Note: Enter debits before credits. General Journal Debit Credit Transaction (a) Record entry Clear entry View general Journal Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $69,500, and it estimates that 4% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has: (a) a $1,182 credit balance before the adjustment. (b) a $348 debit balance before the adjustment View transaction list Journal entry worksheet

Answer & Explanation Solved by verified expert

See Answer