Ask Question
21 August, 09:53

Blossom, Inc. had net sales in 2017 of $1,504,300. At December 31, 2017, before adjusting entries, the balances in selected accounts were Accounts Receivable $263,900 debit, and Allowance for Doubtful Accounts $3,070 credit. If Blossom estimates that 7% of its receivables will prove to be uncollectible. Prepare the December 31, 2017, journal entry to record bad debt expense.

+3
Answers (1)
  1. 21 August, 10:03
    0
    Data given in the question

    Net sales = $1,504,300

    Account receivable = $263,900

    Credit balance Allowance for doubtful debts = $3,070

    So, the journal entry to record the bad debt expense is shown below:

    Bad debt expense A/c Dr $15,403

    To Allowance for doubtful debts $15,403

    (Being bad debt expense is recorded)

    The computation of the bad debt expense is shown below:

    = (Accounts receivable * estimated percentage given) - (credit balance of Allowance for Doubtful Accounts)

    = ($263,900 * 7%) - ($3,070)

    = $18,473 - $3,070

    = $15,403
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Blossom, Inc. had net sales in 2017 of $1,504,300. At December 31, 2017, before adjusting entries, the balances in selected accounts were ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers