journal entry worksheet\n1 2 3\nrecord bad debts expense assuming uncollectibles are estimated to be 3% of…
journal entry worksheet\n1 2 3\nrecord bad debts expense assuming uncollectibles are estimated to be 3% of credit sales.\nnote: enter debits before credits.\ndate general journal debit credit\ndecember 31
Answer
Explanation:
Step1: Identify the accounts involved
The accounts are Bad Debts Expense (an expense account which is debited to record losses) and Allowance for Doubtful Accounts (a contra - asset account which is credited).
Step2: Calculate the Bad Debts Expense amount
Let the amount of credit sales be $x$. The Bad Debts Expense is $0.03x$. Since we don't have the value of credit sales amount, we just record the journal entry in terms of the concept.
Step3: Record the journal entry
On December 31, we debit Bad Debts Expense and credit Allowance for Doubtful Accounts.
Answer:
| Date | General Journal | Debit | Credit |
|---|---|---|---|
| December 31 | Bad Debts Expense | $0.03x$ (where $x$ is credit sales) | |
| December 31 | Allowance for Doubtful Accounts | $0.03x$ |