Question

journal entry worksheet
1 2 3
record bad debts expense assuming uncollectibles are estimated to be 3% of credit sales.
note: enter debits before credits.
date general journal debit credit
december 31

Explanation:

Step1: Identify the accounts involved

The accounts are Bad Debts Expense (an expense account which is debited to record losses) and Allowance for Doubtful Accounts (a contra - asset account which is credited).

Step2: Calculate the Bad Debts Expense amount

Let the amount of credit sales be $x$. The Bad Debts Expense is $0.03x$. Since we don't have the value of credit sales amount, we just record the journal entry in terms of the concept.

Step3: Record the journal entry

On December 31, we debit Bad Debts Expense and credit Allowance for Doubtful Accounts.

Answer:

Date	General Journal	Debit	Credit
December 31	Allowance for Doubtful Accounts		$0.03x$