At December 31, Folgeys Coffee Company reports the following results for its calendar year. Cash sales $ 907,000 Credit sales 307,000 Its year-end unadjusted trial balance includes the following items. Accounts receivable $ 132,000 debit Allowance for doubtful accounts 5,700 debit Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (a) 6% of credit sales, (b) 4% of total sales and (c) 9% of year-end accounts receivable.

The journal entries are as follows:

(a) 6% of credit sales,

Bad debts expense A/c Dr. $18,420

      To Allowance for doubtful accounts$18,420

(To record the bad debt expense)

Workings:

Bad debt expense:

= 6% of credit sales

= 0.06 × 307,000

= $18,420

(b) 4% of total sales,

Bad debts expense A/c Dr. $48,560

      To Allowance for doubtful accounts$48,560

(To record the bad debt expense)

Workings:

Bad debt expense:

= 4% of Total sales

= 0.04 × (307,000 + 907,000)

= 0.04 × $1,214,000

= $48,560

(c) 9% of year-end accounts receivable,

Bad debts expense A/c Dr. $17,580

      To Allowance for doubtful accounts$17,580

(To record the bad debt expense)

Workings:

Bad debts expense:

= 9% of year-end accounts receivable

= (0.09 × $132,000) - $5,700

= $11,880 + $5,700

= $17,580

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

answer; im, thinking it should be (7yrs)///plz check first.good luck