Reference no: EM133125970

Question - At the end of the current year, the accounts receivable account has a balance of $1,177,000 and sales for the year total $13,340,000.

Determine the amount of the adjusting entry to provide for doubtful accounts under each of the following independent assumptions:

a. The allowance account before adjustment has a negative balance of $(15,900). Bad debt expense is estimated at 1/4 of 1% of sales.

b. The allowance account before adjustment has a negative balance of $(15,900). An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $50,900.

c. The allowance account before adjustment has a positive balance of $5,000. Bad debt expense is estimated at 1/2 of 1% of sales.

d. The allowance account before adjustment has a positive balance of $5,000. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $41,500.