The cold preparation of journal entries to record the transaction in December 31 days event on February 1, and Ju?
Company Year (December 31, 1), Chan estimates the annual credit sales of 970,005 in Personal bad as 0.5% Liabilities. Chan estimates for the bad debt expense records. February 1, then a cold decision that the police and the park's $ 580 uncollectible accounts Bad debt write to. On June 5, unexpectedly, the amount of park As previously written off will be paid.
Dec. 31 allowance method Dr. Bad debt expense 4,875 Cr. Dr. Allowance for bad debts 1 February 4875 allowance for bad debts 580 Cr. Dr. June 5 Accounts Receivable 580 Accounts receivable 580 – cr. Dr. Allowance for bad debts 580 CR 580 in cash. 580 Receivables