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2 September, 11:12

Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% of gross accounts receivable and (b) 5% of gross accounts receivable and Allowance for Doubtful Accounts has a $1,700 credit balance.

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  1. 2 September, 11:23
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    (a) estimated bad debts is $42,500

    (b) estimated bad debts is $34,000

    Explanation:

    (a) 1,700/4% = 42,500

    (b) 1,700/5%=34,000
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