Percentage of accounts receivable
Asked by maham237 @ in Business viewed by 286 People
Blue Spruce Corp. uses the percentage-of-receivables basis to record bad debt expense and concludes that 2% of accounts receivable will become uncollectible. Accounts receivable are $402,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,723. Prepare the adjusting journal entry to record bad debt expense for the year.