E7-7 - E7-7 Debit $ 160,000 Credit $ 2,000 800,0 Sales (all...

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Unformatted text preview: E7-7 Debit $ 160,000 Credit $ 2,000 800,0 Sales (all on credit) 50,0 Sales returns and allowances Percent of NET sales Percent of Accounts Receivable 00 1% 5% Debit $ 7,500 Credit $ 7,500 00 Accounts receivable Allowance for doubtful accounts a.) Bad debt expense Allowance for doubtful accounts .01 X ($800,000 – $50,000) = $7,500 b.) Bad debt expense Allowance for doubtful accounts .05 X $160,000 = $8,000 $8,000 – $2,000 = $6,000 Debit $ 6,000 Credit $ 6,000 1 2 ...
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This note was uploaded on 10/27/2010 for the course FIN 82571 taught by Professor Sharp during the Fall '10 term at CSU Sacramento.

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E7-7 - E7-7 Debit $ 160,000 Credit $ 2,000 800,0 Sales (all...

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