While Richard has been recording stock movements, Sandy has been keeping track of the businesses’ debtors. Sandy has analysed each of the debtors that owes the company money and been able to construct the following table. Sandy has informed you that the current balance of the Allowance for Doubtful Debts Account is a $3800 Cr. REQUIRED 2 Show the general journal entry required to adjust the allowance for doubtful debts accounts based on the information provided by Sandy.
Expert Answer
journal entries would be
bad debt expense $1,020.75 Dr
allowance for doubtful accounts $1,020.75 Cr