Whispering Winds Corp. uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $190000 and credit sales are $1910000. Management estimates that 5% of accounts receivable will be uncollectible. What adjusting entry will Whispering Winds Corp. make if the Allowance for Doubtful Accounts has a credit balance of $3800 before adjustment?

bad debt expense 5,700 debit

  allowance for Doubful Accounts 5,700 credit

Explanation:

first, we solve for the expected uncollectible account of the account receivables

$ 190.000 x 5% = 9,500 accounts receivable

This will be the ending balance of the allowance

as currently has 3,800 we solve for the difference and get the bad debt expense adjustment

9,500 - 3,800 = 5,700

explanation: doctrine of respondeat superior is a legal doctrine that is commonly used in tort. this principle makes an employer or principal legally responsible for the wrongful acts done by an employee or agent, if such acts occur within the scope of the employment or agency.

if i need to borrow money for anything, it would be for something like a house or an apartment but, that depend on the situation.

is this good enough?