Question

Georgia Company uses the precentage of recievables method for recording bad debt expense. The accounts recievable balance is 600000 and credit sales are 2700000. Management estimates 4% of accounts receivable will be uncollected. What adjusting entry will Georgia Company make to record bad debt expense if the Allowance for doubtful accounts has 5000 credit balance before adjustment?

Answer 1

0.04 *60,0000= 2400

Debt Credit

Bad debt expense 2400

Accounts receivables 2400

Allowance for doubtful accounts 2400

Bad dent expense 2400

Step-by-step explanation: