Exercise 7-9

The trial balance before adjustment of Novak Inc. shows the following balances.

Dr.

Cr.

Accounts Receivable$80,000Allowance for Doubtful Accounts2,780Sales Revenue (all on credit)$703,300

Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% of gross accounts receivable and (b) 5% of gross accounts receivable and Allowance for Doubtful Accounts has a $1,691 credit balance. (If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

No.

Account Titles and Explanation

Debit

Credit

(a)

(b)

Exercise 7-9

The trial balance before adjustment of Novak Inc. shows the following balances.

Dr.

Cr.

Accounts Receivable$80,000Allowance for Doubtful Accounts2,780Sales Revenue (all on credit)$703,300

Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% of gross accounts receivable and (b) 5% of gross accounts receivable and Allowance for Doubtful Accounts has a $1,691 credit balance. (If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

No.

Account Titles and Explanation

Debit

Credit

(a)

(b)

 

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