Gross accounts receivable and allowance for doubtful


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

Dr. Cr.
Accounts Receivable $96,700
Allowance for Doubtful Accounts 3,050
Sales Revenue (all on credit) $723,000

Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 5% of gross accounts receivable and (b) 6% of gross accounts receivable and Allowance for Doubtful Accounts has a $1,654 credit balance.

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Accounting Basics: Gross accounts receivable and allowance for doubtful
Reference No:- TGS02549336

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