Question -
Waterway, Inc. had net sales in 2017 of $1,492,600. At December 31, 2017, before adjusting entries, the balances in selected accounts were Accounts Receivable $232,200 debit, and Allowance for Doubtful Accounts $1,906 debit. Assume that 11% of accounts receivable will prove to be uncollectible. Prepare the entry to record bad debt expense.
Waterway, Inc. had net sales in 2017 of $1,492,600. At December 31, 2017, before adjusting entries, the balances in selected accounts were Accounts Receivable $232,200 debit, and Allowance for Doubtful Accounts $3,660 credit. Assume Waterway prepares an aging schedule that estimates total uncollectible accounts at $33,100. Prepare the entry to record bad debt expense.