Answered

IDNLearn.com offers a comprehensive solution for all your question and answer needs. Discover the information you need from our experienced professionals who provide accurate and reliable answers to all your questions.

Vaughn, Inc. had net sales in 2020 of $1,410,300. At December 31, 2020, before adjusting entries, the balances in selected accounts were Accounts Receivable $348,200 debit, and Allowance for Doubtful Accounts $2,940 credit. If Vaughn estimates that 10% of its receivables will prove to be uncollectible. Prepare the December 31, 2020, journal entry to record bad debt expense.

Sagot :

Parrainidn

Answer:

Date                  Account Title                                         Debit                   Credit

Dec. 31 2020    Bad Debt expense                              $31,880

                         Allowance for Doubtful Accounts                                   $31,880

Explanation:

Bad debt expense for the period:

= (Estimate of uncollectible receivables) - Allowance for Doubtful accounts credit balance

= (348,200 * 10%) - 2,940

= $31,880

We greatly appreciate every question and answer you provide. Keep engaging and finding the best solutions. This community is the perfect place to learn and grow together. Your search for solutions ends here at IDNLearn.com. Thank you for visiting, and come back soon for more helpful information.