Answer Happy

Swiss Supplies showed the following selected adjusted balances
at its December 31, 2019, year-end:
During 2020, the following selected transactions occurred:
Part A

Required:
1. Journalize transactions (a) through (e). You may
find it useful to post your entries to T-accounts for Accounts
Receivable and Allowance for Doubtful Accounts.
Part B

Required:
2. Prepare the December 31, 2020, adjusting entry to
estimate bad debts assuming that uncollectible accounts are
estimated to be 1% of net credit sales.
3. Show how accounts receivable will appear
on the December 31, 2020, balance sheet.
4. What will bad debt expense be on the
income statement for the year ended December 31, 2020?
Part C (independent of Part B)

Required:
5. Prepare the December 31, 2020, adjusting entry to
estimate bad debts assuming that uncollectible accounts are
estimated to be 3% of outstanding receivables.
6. Show how accounts receivable will appear
on the December 31, 2020, balance sheet.
7. What will bad debt expense be on the
income statement for the year ended December 31, 2020?
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