Question

3. Stratege4U Company unadjusted year-end Trial Balance has the following balances: Accounts Receivable Credit Sales Revenue Allowance for Doubtful Accounts $200,000 $1,00,000 $4,500 Dr. Cr. Dr. Stratege4U Company Accounts Receivable Aging schedule has an estimated Allowance for Doubtful Account calculation of $5,500. Please calculate Bad Debt Expense. Show your work for full points. Bad Debt Expense Allowance for Doubtful Account

Answer 1

Solution :
	Bad Debts A/c
	Dr					Cr
	Date	Particular	Amount	Date	Particular	Amount
		Allowance for Bad Debt	1000
					By Balance b/d	1000
			1000			1000
	Allowance for Doubtful A/c
	Dr					Cr
	Date	Particular	Amount	Date	Particular	Amount
					By Balance c/d	4500
		To Balance b/d	5500		By Bad Debts A/c	1000
			5500			5500
		* Bad Debts = 5500-4500 = 1000