Ryan’s Express has total credit sales for the year of $1
Question and Solution
Ryan’s Express has total credit sales for the year of $180,000 and estimates that 3% of its credit sales will be uncollectible. Record the end-of-period adjusting entry on December 31, in general journal form, for the estimated uncollectible accounts. Assume the following independent conditions existed prior to the adjustment: 1. Allowance for Bad Debts has a credit balance of $925. 2. Allowance for Bad Debts has a debit balance of $385.