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Unformatted text preview: 2% of sales: Bad Debt Expense 3,400 Allowance for Bad Debts 3,400 ($170,000 sales x .02 = $3,400; balance in Allowance for Bad Debts account is ignored) 3. Make the necessary journal entry if the firm decides to estimate its Bad Debt Expense using the accounts receivable aging method . The firms aging schedule estimated $5,500 of accounts receivable to be uncollectible. Bad Debt Expense 3,100 Allowance for Bad Debts 3,100 (Allowance for Bad Debts target balance = $5,500; $2,400 balance currently exists in the account; difference is Bad Debt Expense adjustment of $3,100)...
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- Fall '08