Question

The ledger of the Blue Spruce Corp. at the end of the current year shows Accounts Receivable of $237,000.

(a)
If Allowance for Doubtful Accounts has a credit balance of $4,700 in the trial balance and bad debts are expected to be 9% of accounts receivable, journalize the adjusting entry for the end of the period. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Answer 1

Answer: Dr: increase in provision for bad debts of 16630

Cr: P & L a/c 16630

Step-by-step explanation:

finally reduce the figure for a/c receivables by 21330