Chapter 7 - Cash and Receivables - Review and Practice - Brief Exercises - Page 363: BE7-6

(a) Bad Debt Expense ........................................... 26,900 Allowance for Doubtful Accounts [(10% X $250,000) + $1,900] ................. 26,900 (b) Bad Debt Expense ........................................... 22,200 Allowance for Doubtful Accounts ($24,600 – $2,400) ................................ 22,200

(a) Bad Debt Expense ........................................... 26,900 Allowance for Doubtful Accounts [(10% X $250,000) + $1,900] ................. 26,900 (b) Bad Debt Expense ........................................... 22,200 Allowance for Doubtful Accounts ($24,600 – $2,400) ................................ 22,200