At December 31, GreenTea Company reports the following results for its calendar-year.
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Cash sales
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$1,200,000
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Credit sales
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900,000
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Its year-end unadjusted trial balance includes the following items.
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Accounts receivable
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. . . . . $195,000 debit
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Allowance for doubtful accounts
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. . . . . 3,000 debit
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a. Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated to be 1.5% of credit sales.
b. Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated to be 0.5% of total sales.
c. Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated to be 6% of year-end accounts receivable.