Prepare the necessary journal entries for Perez Computers.
5 E7-7 (Recording Bad Debts) Duncan Company reports the following financial information before adjustments.
Instructions
Debit Credit
Accounts Receivable $90,000
Allowance for Doubtful Accounts $1,750
Sales Revenue (all on credit) $680,000
Prepare the journal entry to record Bad Debt Expense assuming Duncan Company estimates bad debts at (a) 1% of net sales and (b) 5% of accounts receivable