Problem
Halan Co had the following in its adjusted trial balance as of December 31, 2014.
DR CR
Accounts Receivable 4,000,000
Allowence for doubtful Accounts 4.000
Net Sales 5,000,000
They wrote off $ 1,000 in accounts receivable in 2014.
Bad debts is based on 1 1/2% of gross receivables. Determine bad debt amount, ending balance in allownace for doubtful accounts, and Accounts Receivable.