Answer
(a) Bad Debt Expense....................................................... 4,950*
…………Allowance for Doubtful Accounts.................................... 4,950
(b) Bad Debt Expense....................................................... 5,800**
...........Allowance for Doubtful Accounts.................................... 5,800
Work Step by Step
(80,000 X 4%) + 1,750 = 4,950*
580,000 X 1% = 5,800**
