Chapter 1 Problem 5-11
a. Required allowance (5% x 600,000) 30,000
Add: Debit balance in allowance account 10,000
Doubtful accounts expense 40,000
Doubtful accounts 40,000
Allowance for doubtful accounts 40,000
b. Required allowance 50,000
Add: Debit balance in allowance account 10,000
Doubtful accounts expense 60,000
Doubtful accounts 60,000
Allowance for doubtful accounts 60,000
c. Doubtful accounts (2% x 1,900,000) 38,000
Allowance for doubtful accounts 38,000
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