Allen Bikes Ltd. has a year-end of December 31, 20x9. During the year, the company wrote off accounts receivable in the amount of $ 2,140. Allen's December 31, 20x9 general ledger account balances, prior to making any year-end adjusting journal entries, were as follows: Account Debit Credit Accounts Receivable 125,477 Allowance for Doubtful Accounts 614 Net Credit Sales 2,059,391 Allen Bikes Ltd. has estimated that bad debts will equal ½ of 1% of sales. What will be the dollar amount of the bad debt expense when making the adjusting journal entry for the year-ended December 31, 20x9 (round to the nearest whole dollar)?

Allen Bikes Ltd. has a year-end of December 31, 20x9. During the year, the company wrote off accounts receivable in the amount of $ 2,140. Allen's December 31, 20x9 general ledger account balances, prior to making any year-end adjusting journal entries, were as follows: Account Debit Credit Accounts Receivable 125,477 Allowance for Doubtful Accounts 614 Net Credit Sales 2,059,391 Allen Bikes Ltd. has estimated that bad debts will equal ½ of 1% of sales. What will be the dollar amount of the bad debt expense when making the adjusting journal entry for the year-ended December 31, 20x9 (round to the nearest whole dollar)?

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter16: Accounting For Accounts Receivable

Section: Chapter Questions

Problem 5SEA: UNCOLLECTIBLE ACCOUNTSPERCENTAGE OF SALES AND PERCENTAGE OF RECEIVABLES At the end of the current...

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