If the Allowance for Doubful Accounts for ABC Corporation had a $5,000 debit balance, would it...

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If the Allowance for Doubful Accounts for ABC Corporation had a $5,000 debit balance, would it...

If the Allowance for Doubful Accounts for ABC Corporation had a $5,000 debit balance, would it change the journal entry for #8? If so, show the new entry.

*** I do not need #8 answered. I am aware of one quesiton per post but here is number 8 so you can answer the above question.***

#8-- If Jan. credit sales for ABC Corporation were $10,000 and AR has a balance of $20,000, the company believes 5% of credit sales or 30% or AR are uncollectibke ans Allowance for Doubtful Accounts has a credit balance on Jan 1 of $5,000.

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Answer 1

Answer #1

Yes, the amounts for journal entry would change

Date	General Journal	Debit	Credit
January 31	Bad Debt Expense	11000		=(20000*30%)+5000
	Allowance for Doubtful Accounts		11000

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Answer 2

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Add Answer to: If the Allowance for Doubful Accounts for ABC Corporation had a $5,000 debit balance, would it...

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If the Allowance for Doubful Accounts for ABC Corporation had a $5,000 debit balance, would it...