Net Accounts Receivable: Percentage of Sales Method Video Lessons

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Problem: You have the following information for Wendy’s Wedding Dresses: Accounts receivable $15,000 Allowance for Doubtful Accounts  $300 Sales  $50,000, of which $6,000 is cash sales Sales Discounts $1,000 (all credit sales) Sales returns $3,000 (all credit sales) Purchase discounts $2,500 If the company accrues for bad debts at 3% of net credit sales at 12/31, the adjusting entry should be:

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Problem Details

You have the following information for Wendy’s Wedding Dresses:
Accounts receivable $15,000
Allowance for Doubtful Accounts  $300
Sales  $50,000, of which $6,000 is cash sales
Sales Discounts $1,000 (all credit sales)
Sales returns $3,000 (all credit sales)
Purchase discounts $2,500

If the company accrues for bad debts at 3% of net credit sales at 12/31, the adjusting entry should be:

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