Swifty Corporation uses the percentage-of-receivables basis to record bad debt expense and concludes that 4% of accounts receivable will become uncollectible. Accounts receivable are $417,800 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,657. (a) Prepare the adjusting journal entry to record bad debt expense for the year. (b) If the allowance for doubtful accounts had a debit balance of $932 instead of a credit balance of $2,657, prepare the adjusting journal entry for bad debt expense.

Please see explanation column for answer.

Explanation:

for  Swifty  Coporation .

To calculate the allowance for doubtful account with credit balance of $2657

Account Particulars                                                        Amount

Allowance from doubtful account    4% x $ 417, 800 $16, 712

credit balance ( less)                                                     $2,657

bad debt expense                                                          $14,055

A)Journal to record bad debt expense

Account                            Debit           Credit

bad debts expense       $14055

Allowance of doubtful accounts        $14055

b) if the allowance for doubtful accounts had a debit balance of $932 instead of a credit balance of $2,657

Account Particulars                                                        Amount

Allowance from doubtful account    4% x $ 417, 800 $16, 712

debit  balance ( add)                                                         $932

bad debt expense                                                           $17644

B)Journal to record bad debt expense

Account                            Debit           Credit

bad debts expense       $17,644

Allowance of doubtful accounts        $17644

they can see what that city is producing and to also see if they can some how get that product. like gold in africa.

i'm pretty sure the answer is 60.