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question the j t traverse company is well known for its traverse pens the company re 4289909

Question

The J.T. Traverse Company is well known for its Traverse pens. The company recently reported the following amounts in its unadjusted trial balance as of December 31. Debits S 26,691,000 Credits Accounts Receivable Allowance for Doubtful Accounts Sales Revenue $ 944,000 154,312,000 Required: 1. & 2. Prepare the adjusting journal entry required at December 31 for recording Bad Debt Expense. (If no entry is required for a transaction/event, select “No Journal Entry Required” in the first account field.) () Assume Traverse uses 1/4 of 1 percent of sales to estimate its bad debt expense for the year. TIP: The percentage of credit sales method directly calculates Bad Debt Expense. (ii) Assume instead that Traverse uses the aging of accounts receivable method and estimates that $991,000 of Accounts Receivable will be uncollectible. TIP: The aging of accounts receivable method focuses on calculating what the adjusted Allowance for Doubtful Accounts balance should be. You need to consider the existing balance when View transaction list Journal entry worksheet Record the entry for bad debt expenses under the percentage of credit sales method. Note: Enter debits before credits. Date General Journal Debit Credit December 31

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