Brief Exercise 7-4
Wilton, Inc. had net sales in 2014 of $1,435,700. At December 31, 2014, before adjusting entries, the balances in selected accounts were: Accounts Receivable $249,500 debit, and Allowance for Doubtful Accounts $2,840 credit. If Wilton estimates that 4% of its net sales will prove to be uncollectible.
Prepare the December 31, 2014, journal entry to record bad debt expense. (If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
|Date||Account Titles and Explanation||Debit||Credit|
|December 31, 2014|