Question

Manning Co. shows the following account balances on October 31, 2024, its fiscal year-end. Account Debit...

Manning Co. shows the following account balances on October 31, 2024, its fiscal year-end.

Account

Debit

Credit

Accounts receivable

         71,000

Allowance for doubtful accounts

              1,300

Sales ($66,000 cash sales)

         505,000

The company’s accountant estimates bad debts to be 3.5% of credit sales.
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Homework Answers

Answer #1
Date Account titles and explanation Debit Credit
October 31, 2024 Bad debt expense $        15,365
Allowance for doubtful accounts $         15,365
To record bad debts expense. ((505000-66000)*3.50%)

Additional infornation

Net realizable value of accounts receivable = $54335

Manning Company
Partial Balance sheet
October 31, 2024
Assets
Current Assets
Accounts receivable $        71,000
Less: Allowance for doubtful accounts (1300+15365) $        16,665
Accounts receivable, Net $         54,335
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