accounting 4,3

Module 4 Practice Problem 6.2

Apr. 13: Allowance for Doubtful Accounts $8,450

Accounts Receivable $8,450

May 15: Cash $500

Allowance for Doubtful Accounts $6,600

Accounts Receivable $7,100

July 27: Accounts Receivable $8,450

Allowance for Doubtful Accounts $8,450

Cash $8,450

Accounts Receivable $8,450

Dec. 31: Allowance for doubtful accounts $13,510

Accounts Receivable: Chapman $2,225

Accounts Receivable: DeRosa $3,550

Accounts Receivable: Galloway $4,770

Accounts Receivable: Klatt $1,275

Accounts Receivable: Richey $1,690

Dec. 31: Adjustment

Bad Debt Expense $28,335

Allowance for doubtful accounts $28,335

(3,778,000 *.0075 = $28,335)