A trial balance before adjustments included the following:
Debit Credit
Sales $500,000
Sales returns and allowance $10,000
Accounts receivable 50,000
Allowance for doubtful accounts 5,000
Prepare the proper adjusting journal entry for each of the following situations:
o The estimate of uncollectibles is made by taking 4% of gross sales
o The estimate of uncollectibles is made by taking 5% of net sales
o The estimate of uncollectibles is made by taking 14% of gross accounts receivable
o The estimate of uncollectibles is made by taking 13% of gross accounts receivable AND the allowance for doubtful accounts has a debit balance of $600