Ask Question
14 March, 01:31

On June 30 (the end of the period), Brown Company has a credit balance of $2,360 in Allowance for Doubtful Accounts. An evaluation of accounts receivable indicates that the proper balance should be $28,690. Journalize the appropriate adjusting entry.

+3
Answers (1)
  1. 14 March, 03:02
    0
    Dr Bad debt expense 26,330

    Cr Allowance for doubtful accounts 26,330

    Explanation:

    credit balance of allowance for doubtful accounts = $2,360

    the correct balance should be $28,690, so the account must be adjusted by $28,690 - $2,360 = $26,330

    Dr Bad debt expense 26,330

    Cr Allowance for doubtful accounts 26,330

    Allowance for doubtful accounts is a contra asset account with a credit balance that reduces the value of accounts receivable.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “On June 30 (the end of the period), Brown Company has a credit balance of $2,360 in Allowance for Doubtful Accounts. An evaluation of ...” 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