Vaughn Company reports the following financial information before adjustments.
| |
Dr. |
Cr. |
| Accounts Receivable |
$155,400 |
|
| Allowance for Doubtful Accounts |
|
$3,890 |
| Sales Revenue (all on credit) |
|
800,700 |
| Sales Returns and Allowances |
50,330 |
|
Prepare the journal entry to record bad debt expense assuming Vaughn Company estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but Allowance for Doubtful Accounts had a $1,470 debit balance.