At December 31, Yarrow Company reports the following results for its calendar year from the adjusted trial balance.Credit sales$2,300,000Cash sales1,050,000Accounts Receivable295,000Allowance for doubtful accounts (credit balance)750a. Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated to be 1.1% of credit sales.b. Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated to be .8% of total sales.c. Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated to be 7.0% of year-end accounts receivable.
What will be an ideal response?
| a.. | Bad Debts Expense | 25,300 | ? |
| ? | Allowance for doubtful accounts | ? | 25,300 |
| b. | Bad Debts Expense | 26,800 | ? |
| ? | Allowance for doubtful accounts | ? | 26,800 |
| c. | Bad Debts Expense | 19,900 | ? |
| ? | Allowance for doubtful accounts | ? | 19,900 |
Business
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