| Dr. | Cr. | |||||
| Accounts Receivable | $140,500 | |||||
| Allowance for Doubtful Accounts | $3,730 | |||||
| Sales Revenue (all on credit) | 816,400 | |||||
| Sales Returns and Allowances | 53,360 | |||||
Prepare the journal entry to record bad debt expense assuming Metlock Company estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but Allowance for Doubtful Accounts had a $1,540 debit balance. (If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
