Ask Question
18 August, 02:21

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.

+5
Answers (1)
  1. 18 August, 05:22
    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 you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers