Ask Question
30 April, 07:33

Novak Company has a credit balance of $3,210 in Allowance for Doubtful Accounts before adjustment. The total estimated uncollectibles under the percentage-of-receivables basis is $5,930. Prepare the adjusting entry to record bad debt expense.

+3
Answers (1)
  1. 30 April, 07:51
    0
    Bad debt expense (Debit) : 2,720

    Allowance for doubtful accounts (Credit) : 2,720

    Explanation:

    The adjusting entry to record bad debt expense is an entry to recognize the accounts receivables that are qualified as uncollectable, for the next accountable period. It is recognized like this: Bad debt expense (Debit) and Allowance for doubtful accounts (Credit).

    At the end of each accountable period, the amount of Allowance for doubtful accounts must be calculated again, so an adjusting entry must be done between the difference in the final balance and the actually estimated uncollectibles.

    In this particular case: 5.930 - 3,210 = 2,720
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Novak Company has a credit balance of $3,210 in Allowance for Doubtful Accounts before adjustment. The total estimated uncollectibles under ...” 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