The Cowl Company uses the allowance method in accounting for uncollectible accounts. Past
rience indicates that 5.0% of accounts receivable will eventually be uncollectible. Selected
int balances at December 31, 2022:
Net Credit Sales
Accounts Receivable
Allowance for Doubtful Accounts (debit)
12/31/2022
$800,000
260,000
800
IRED: Prepare the adjusting entry on December 31, 2022, to recognize bad debts expense.
COWL COMPANY
GENERAL JOURNAL
Account
Debit
Credit