Reference no: EM131722053

Problem - Providing for Doubtful Accounts

At the end of the current year, the accounts receivable account has a debit balance of $866,000 and sales for the year total $9,820,000.

1. The allowance account before adjustment has a credit balance of $11,700.Bad debt expenseis estimated at 3/4 of 1% of sales.

2. The allowance account before adjustment has a credit balance of $11,700. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $37,400.

3. The allowance account before adjustment has a debit balance of $7,900. Bad debt expense is estimated at 1/2 of 1% of sales.

4. The allowance account before adjustment has a debit balance of $7,900. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $65,600.

Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above.