Journalize the adjusting entry for bad debts
Journalize the adjusting entry for bad debts at December 31, 2010, assuming that the unadjusted balance in Allowance for Doubtful Accounts is a debit of $1,100 and the aging schedule indicates that total estimated bad debts will be $36,700.
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Employee salaries owed for Monday thru Thursday of a five-day workweek; weekly payroll, $10,000. Paychecks are cut Fridays. Record the accrual on Thursday and the necessary adjusting journal entry on Friday.
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