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At December 31, GreenTea Company reports the following results for its calendar-year.
Cash sales
$1,200,000
Credit sales
900,000
Its year-end unadjusted trial balance includes the following items.
Accounts receivable
. . . . . $195,000 debit
Allowance for doubtful accounts
. . . . . 3,000 debit
a. Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated to be 1.5% of credit sales.
b. Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated to be 0.5% of total sales.
c. Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated to be 6% of year-end accounts receivable.
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