Question

# The ledger of the Tortillo company at the end of the current year shows Accounts Receivable...

The ledger of the Tortillo company at the end of the current year shows Accounts Receivable of \$110,000 and Sales of \$700,000.

Journalize the adjusting entry for end of the period for each of the following independent scenarios:

a) If Allowance for Doubtful Accounts has a debit balance of \$2,000 in the trial balance and bad debts are expected to be 6% of accounts receivable.

b) If Allowance for Doubtful Accounts has a credit balance of \$2,200 in the trial balance and bad debts are expected to be 6% of accounts receivable.

c) If Allowance for Doubtful Accounts has a credit balance of \$3,200 in the trial balance and bad debts are expected to be 1% of sales.

d) If Allowance for Doubtful Accounts has a debit balance of \$2,400 in the trial balance and bad debts are expected to be 1% of sales.

Journal Entry:

 Date Account Name Debit Credit A. Bad Debts Expense \$8,600 Allowance for doubtful accounts \$8,600 ( 110,000 * 6%= \$6600+2000) B. Bad Debt Expense \$4,400 Allowance for doubtful accounts \$4.400 ( 110,000 *6% = \$6600 - 2200) C. Bad Debt Expense \$3,800 Allowance for doubtful accounts \$3,800 (700,000*1%= \$7000 -3200) D. Bad Debt Expense Allowance for doubtful accounts \$9,400 ( 700,000 *1% = 7000 +2400) \$9,400

#### Earn Coins

Coins can be redeemed for fabulous gifts.