980012l
Jan 26, 2008, 12:29 PM
The company estimates that 3% of Accounts Receivable will not be collected. The year end adjusting entry has not been made.
Accounts Receivable $700,000
Now I have calculated $700,000 x 0.03% = $21,000
So How do I write my adjustments??? Do I write this off as a bad debt??
I don't quite understand how it should be written (i.e Accounts receivable expense???)
Accounts Receivable $700,000
Now I have calculated $700,000 x 0.03% = $21,000
So How do I write my adjustments??? Do I write this off as a bad debt??
I don't quite understand how it should be written (i.e Accounts receivable expense???)