Tanning company analyzes its receivables to estimate bad debt expense. the accounts receivable balance is $302,000 and credit sales

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Tanning company analyzes its receivables to estimate bad debt expense. the accounts receivable balance is $302,000 and credit sales are $1,000,000. an aging of accounts receivable shows that approximately 4% of the outstanding receivables will be uncollectible. what adjusting entry will tanning company make if the allowance for doubtful accounts has a credit balance of $1,800 before adjustment?

Dr. Frankie Medhurst · Accepted Answer

Allowance for Doubtful Accounts has a credit balance of $1,800 before adjustment and has to be adjusted up to $12,080 by $10,280. by debiting 'Provisions for doubtful debts' and crediting 'Account Receivable' Explanation:If Tanning Company analyzes its receivables to estimate bad debt expense and the accounts receivable balance is $302,000 and the aging of accounts receivable shows that approximately 4% of the outstanding receivables will be uncollectible. Therefore the adjusting entry that Tanning Company will make if the Allowance for Doubtful Accounts has a credit balance of $1,800 before adjustment will be an 'increment to the current balance of $1,800 to be adjusted up to $12,080 by $10,280. This is done by debiting 'Provisions for doubtful debts' and crediting 'Account Receivable' JOURNAL ENTRIES Debit ..Provision for Doubtful Debts10,280CreditAccount Receivable10,280

Dr. Frankie Medhurst · Answer

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Dr. Frankie Medhurst · Answer

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o

Francesco Paucek

Tanning company analyzes its receivables to estimate bad debt expense. the accounts receivable balance is $302,000 and credit sales

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