Business, 15.04.2020 17:15 fruitsnaxFTW5535

Waterway Industries uses the percentage-of-receivables basis to record bad debt expense and concludes that 3% of accounts receivable will become uncollectible. Accounts receivable are $396,800 at the end of the year, and the allowance for doubtful accounts has a credit balance of $3,043.(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 $951 instead of a credit balance of $3,043, prepare the adjusting journal entry for bad debt expense.

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Waterway Industries uses the percentage-of-receivables basis to record bad debt expense and conclude...