QUESTION 24
Brule Co. has been in business five years. The unadjusted trial balance at the end of the current year shows:
Accounts Receivable $30,000 Dr.
Sales Revenue $180,000 Cr.
Allowance for Doubtful Accounts $2,000 Dr.
Bad debts are estimated to be 10% of receivables. Prepare the entry to adjust Allowance for Doubtful Accounts.
Allowance for Doubtful Accounts 3,000
Bad Debt Expense 3,000
Bad Debt Expense 3,000
Allowance for Doubtful Accounts 3,000
Bad Debt Expense 5,000
Allowance for Doubtful Accounts 5,000
Allowance for Doubtful Accounts 2,000
Bad Debt Expense 2,000