Question: The trial balance before adjustment of Reba McIntyre Inc. shows the following balances.
|
|
Dr.
|
|
Cr.
|
| Accounts Receivable |
|
$93,600 |
|
|
| Allowance for Doubtful Accounts |
|
2,380 |
|
|
| Sales Revenue (all on credit) |
|
|
|
$689,800 |
Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of
(a) 5% of gross accounts receivable and
(b) 2% of net sales