vaemt
Apr 15, 2007, 05:24 PM
Ok I am so lost I keep trying to get this down pat but it keeps coming up wrong on my end... please help!! :eek:
Use: The percent of accounts recv. Method to estimate bad debts ---
One Dec 31 2005 - outstanding accts recv of $55,000 with 2% estimated to be uncollectable.
Then I have to prepare the adjusting entry to record these bad debts expense for the year with the assumption that the allowance for "doubtful accounts" has the following:
#1 - A $415.00 credit balance before the adjustment
#2 - A $291 debit balance before the adjustments
Now what I can get so far is
Dec 31, 2005 - Bad Debts Expense -- Debit - $1,100
Dec 31, 2005 - Allowance for Doubtful Accounts - $1,100
To record estimated bad debts
But that is it I have tried to do the second part and it looks all wrong
Someone please HELP!! :eek: :eek:
Use: The percent of accounts recv. Method to estimate bad debts ---
One Dec 31 2005 - outstanding accts recv of $55,000 with 2% estimated to be uncollectable.
Then I have to prepare the adjusting entry to record these bad debts expense for the year with the assumption that the allowance for "doubtful accounts" has the following:
#1 - A $415.00 credit balance before the adjustment
#2 - A $291 debit balance before the adjustments
Now what I can get so far is
Dec 31, 2005 - Bad Debts Expense -- Debit - $1,100
Dec 31, 2005 - Allowance for Doubtful Accounts - $1,100
To record estimated bad debts
But that is it I have tried to do the second part and it looks all wrong
Someone please HELP!! :eek: :eek: