Haven Company Uses the Percentage of Sales Method for Recording $\begin{array}{lrr} \text {Bad Debt Expense } &\33,000\ \text {Allowance for Doubtful Accounts } &&33,000\\\end{array}$

question 65

Short Answer

Haven Company uses the percentage of sales method for recording bad debt expense. For the year, cash sales are $600,000 and credit sales are $2,700,000. Management estimates that 1% is the sales percentage to use. What adjusting entry will Haven Company make to record the bad debt expense? a.
$\begin{array}{lrr} \text {Bad Debt Expense } &\33,000\ \text {Allowance for Doubtful Accounts } &&33,000\\\end{array}$

b.
$\begin{array}{lrr} \text { Bad Debt Expense} &27,000\\ \text { Allowance for Doubtful Accounts } &&27,000\\\end{array}$

c.
$\begin{array}{lrr} \text { Bad Debt Expense } &27,000\\ \text { Accounts Receivable } &&27,000\\\end{array}$

d.
$\begin{array}{lrr} \text { Bad Debt Expense } &33,000\\ \text { Accounts Receivable } &&33,000\\\end{array}$

Understand the different types of tissues and their roles in the human body.

Identify the structural characteristics of various connective tissues.

Recognize the specific functions of muscle tissue types.

Describe the properties and functions of epithelial tissue.

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Definitions:

Conglomerate

A coarse-grained sedimentary rock composed of rounded clasts (rock fragments) cemented by finer-grained materials.

Igneous Rocks

Rocks formed through the cooling and solidification of magma or lava, categorized into intrusive and extrusive types.

Metamorphic Rock

Rock that has been transformed from an original form (sedimentary or igneous) into a new form through heat, pressure, and chemical processes, without melting.

River Terrace

A flat, bench-like structure alongside a river, formed by the river cutting deeply into the land then retreating, leaving a raised platform.