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The company has an allowance for doubtful debts of $2,400. The current policy is to maintain...

The company has an allowance for doubtful debts of $2,400. The current policy is to maintain this at 4% of total credit sales. The Accounts Receivable balance at 30 June is $75,000. No entries in relation to the allowance have been made this year.

How to record this in the journal?

I'm thinking the same question, but it does't provided in the question, So is it possible to assume a credit sale? Or I can calculate back from the accounts receivable balance?

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