Carla Company reports the following financial information before adjustments.
Accounts Receivable $150,000
Allowance for Doubtful Accounts $2,650
Sales Revenue (all on credit) 821,100
Sales Returns and Allowances 50,660
Prepare the journal entry to record bad debt expense assuming Carla Company estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but Allowance for Doubtful Accounts had a $1,350 debit balance.

A) total estimated bad debts = $150,000 x 4% = $6,000

total bad debts - allowance for uncollectible accounts = $6,000 - $2,650 = $3,350

so the journal entry should be:

Dr Bad debts expense 3,350

    Cr Allowance for uncollectible accounts 3,350

B) if allowance for uncollectible accounts had a debit balance of $1,350, you would need to add that debit balance to the estimated bad debts:

total bad debts + debit balance allowance for uncollectible accounts = $6,000 + $1,350 = $7,350

the journal entry should be:

Dr Bad debts expense 7,350

    Cr Allowance for uncollectible accounts 7,350

being suspected of supplying drugs means you are much more likely to be charged. the amount of drugs found on you, and whether you have a criminal record, will be taken into account when a punishment is being decided.

decisions to prosecute are taken by the public prosecution service. the maximum sentences for intent to supply drugs are:

answer; situational irony;