Question

Problem #2 - Bad Debt Reporting (20 Points) The trial balance before adjustment of Risen Company reports the following balances: Dr. Cr. Accounts receivable $600,000 Allowance for doubtful accounts $ 10,000 750,000 Sales (all on credit) Requirements: (a) Prepare the journal entry for estimated bad debts assuming that doubtful accounts are estimated to be 4% of gross accounts receivable. Ending Balance of Allowance (Indicate debit or credit and amount) (b) Prepare the journal entry for estimated bad debts assuming that doubtful accounts are estimated to be 7% of net sales. Ending Balance of Allowance (Indicate debit or credit and amount)

          Problem #2 - Bad Debt Reporting (20 Points)
The trial balance before adjustment of Risen Company reports the following balances:
Dr.
Cr.
Accounts receivable
$600,000
Allowance for doubtful accounts
$ 10,000
750,000
Sales (all on credit)
Requirements:
(a) Prepare the journal entry for estimated bad debts assuming that doubtful accounts are estimated
to be 4% of gross accounts receivable.
Ending Balance of Allowance (Indicate debit or credit and amount)
(b) Prepare the journal entry for estimated bad debts assuming that doubtful accounts are estimated
to be 7% of net sales.
Ending Balance of Allowance (Indicate debit or credit and amount)

Problem #2 - Bad Debt Reporting (20 Points)
The trial balance before adjustment of Risen Company reports the following balances:
Dr.
Cr.
Accounts receivable
600,000
Allowance for doubtful accounts 10,000
750,000
Sales (all on credit)
Requirements:
(a) Prepare the journal entry for estimated bad debts assuming that doubtful accounts are estimated
to be 4% of gross accounts receivable.
Ending Balance of Allowance (Indicate debit or credit and amount)
(b) Prepare the journal entry for estimated bad debts assuming that doubtful accounts are estimated
to be 7% of net sales.
Ending Balance of Allowance (Indicate debit or credit and amount)

Added by Patrick G.

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