Pina Fashions has been in business several years. At the end of the current year, the ledger shows the following:
Accounts Receivable
R$ 349,200 Dr.
Sales Revenue
2,339,600 Cr.
Allowance for Doubtful Accounts
6,200 Cr.
Bad debts are estimated to be 6% of accounts receivable. Prepare the entry to adjust Allowance for Doubtful Accounts. (Credit
account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit
entry.)
Account Titles and Explanation
Debit
Credit