An Inexperienced Accountant Made the Following Entries Instructions
Prepare the Correcting Entries

question 36

Essay

An inexperienced accountant made the following entries. In each case the explanation to the entry is correct. $\begin{array}{lrr} \text { 27\quad\quad Cash} &780\\\quad\quad\quad \text {Bad Debt Expense } &&780\\ \quad\quad\text { (Collection of account previously written off as } &\\ \quad\quad\text { uncollectible under allowance method) } &\\\end{array}$


$\begin{array}{lll} \text { 31\quad\quad Bad Debt Expense} &400\\\quad\quad\quad \text { Allowance for Doubtful Accounts} &&400\\\quad\quad\text { (To recognize estimated bad debts based on \( 1 \% \) } &\\ \quad\quad\text { of net sales of \( \$ 400,000 \) } &\\\end{array}$
Instructions
Prepare the correcting entries.

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Definitions:

Scientific Evaluation

The process of systematically examining scientific evidence through experiments and observations to make informed conclusions or decisions.

Hierarchy

A system or organization in which people or groups are ranked one above the other according to status or authority.

Defence Mechanisms

Psychological strategies used unconsciously to protect oneself from anxiety arising from unacceptable thoughts or feelings.

Self-Actualization

Attaining or meeting one's capabilities and potential, viewed as an essential impulse or need within everyone.