Tony Company at the end of the fiscal 2014 year has the following information: C

Question

Tony Company at the end of the fiscal 2014 year has the following information: Credit Sales, $2,500,000 Sales Returns & Allowances $25.000 Accounts Receivable $200.000 and Allowance for Doubtful Accounts with a debit o $1.500. Prepare the general journal entry to record the end of the year adjusting entry if Tony uses 0.5% of Net Credit Sales as the basis for determining Bad Debt Expense. Prepare the general journal entry to record the end of the year adjusting entry if Tony uses 5% of Accounts Receivable as the basts for determining Bad Debt Expend

Explanation / Answer

Journal

a. Bad debt expense 12735       Allowance for doubtful accounts 12375 b. Bad debt expense 10000       Allowance for doubtful accounts 10000

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