The following selected amounts are reported on the year-endunadjusted trial balance report for a company that uses the percentof sales method to determine its bad debts expense. Accountsreceivable $ 430,000 Debit Allowance for Doubtful Accounts 1,400Debit Net Sales 2,250,000 Credit All sales are made on credit.Based on past experience, the company estimates 1.0% of creditsales to be uncollectible. What adjusting entry should the companymake at the end of the current year to record its estimated baddebts expense? Multiple Choice Debit Bad Debts Expense $5,700;credit Allowance for Doubtful Accounts $5,700. Debit Bad DebtsExpense $22,500; credit Allowance for Doubtful Accounts $22,500.Debit Bad Debts Expense $23,900; credit Allowance for DoubtfulAccounts $23,900. Debit Bad Debts Expense $4,300; credit Allowancefor Doubtful Accounts $4,300. Debit Bad Debts Expense $21,100;credit Allowance for Doubtful Accounts $21,100.
The following selected amounts are reported on the year-endunadjusted trial balance report for a company that uses the percentof sales method to determine its bad debts expense. Accountsreceivable $ 430,000 Debit Allowance for Doubtful Accounts 1,400Debit Net Sales 2,250,000 Credit All sales are made on credit.Based on past experience, the company estimates 1.0% of creditsales to be uncollectible. What adjusting entry should the companymake at the end of the current year to record its estimated baddebts expense? Multiple Choice Debit Bad Debts Expense $5,700;credit Allowance for Doubtful Accounts $5,700. Debit Bad DebtsExpense $22,500; credit Allowance for Doubtful Accounts $22,500.Debit Bad Debts Expense $23,900; credit Allowance for DoubtfulAccounts $23,900. Debit Bad Debts Expense $4,300; credit Allowancefor Doubtful Accounts $4,300. Debit Bad Debts Expense $21,100;credit Allowance for Doubtful Accounts $21,100.
