Top Posters
Since Sunday
w
3
w
3
e
3
3
r
3
g
2
2
b
2
M
2
V
2
f
2
c
2
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
StormLrd StormLrd
wrote...
Go to Answer
Posts: 1017
Rep: 0 0
7 years ago
The December 31, 2014 unadjusted trial balance of Eel Creek Ltd. (Eel) disclosed the following balances:

Accounts receivable   $400,000
Allowance for doubtful accounts    24,000 cr.
Net Credit Sales    1,400,000

Additionally, the firm has given up trying to collect on $19,000 from a customer who recently declared bankruptcy. Eel's management has not yet written off the amount but intends to do so before the company's books are closed for the year. The firm does not use the direct write-off method to estimate bad debt expense.

Provide the entry to record bad debt expense for 2014 assuming the firm uses the percentage of credit sales method for recording bad debt expense. On the average Eel has experienced a 8% rate of uncollectible accounts over the past 5 years.
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
Read 86 times
1 Reply
Replies
Answer verified by a subject expert
AlexmosutheAlexmosuthe
wrote...
#1
Posts: 470
Rep: 16 0
7 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

StormLrd Author
wrote...

7 years ago
Thank you, thank you, thank you!
kater28
wrote...

Yesterday
Good timing, thanks!
dri
wrote...

2 hours ago
Brilliant ツ
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1147 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 580
  
 586
  
 314
Your Opinion
Do you believe in global warming?
Votes: 488
Previous poll results: Which country would you like to visit for its food?