PROBLEM DATA
On October 31, 2012, Easy Breezy Beauty Supplies had the following amounts due from its customers:
REQUIREMENT
In the spaces provided below, record the journal entry for the provision for uncollectible accounts under each of the following independent assumptions:
a. The Allowance for Doubtful Accounts before adjustment has a credit balance of $500.
b. The Allowance for Doubtful Accounts before adjustment has a debit balance of $250.
c. Assume that October’s credit sales were $70,000. Uncollectible accounts expense is estimated at 2% of sales.