Prepare the journal entries for estimating bad debts

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Reference no: EM13568768

The accounts have the following balaces

                                                            D                    C

acquiacoount receivable                  100,000

allowance for doubtful accounts                               2,500

sales                                                                        750000

sales return and allowances             40,000

1) Prepare the journal entries for estimating bad debts assuming that the following separate assumptions are (!) 6% accounts receivable (2)1% of net sales

2) Assume instead that the allowance has a debit balance instead of a credit balance. prepare the neceessary entries to record bad debts under each of the above assumptions.

Reference no: EM13568768

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