Georgia Company uses the precentage of recievables method for recording bad debt expense. The accounts recievable balance is 600000 and credit sales are 2700000. Management estimates 4% of accounts receivable will be uncollected. What adjusting entry will Georgia Company make to record bad debt expense if the Allowance for doubtful accounts has 5000 credit balance before adjustment?

Respuesta :

Answer:

0.04 *60,0000= 2400

                                                       Debt                                     Credit

Bad debt expense                            2400

Accounts receivables                                                                     2400

Allowance for doubtful accounts     2400

Bad dent expense                                                                          2400

Explanation: