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The following information is available for Fess Company Credit sales during 2014 $150000 Allowance for doubtful accounts at December 31 2013 1450 Accounts receivable deemed worthless and written

The following information is available for Fess Company: Credit sales during 2014 $150,000 Allowance for doubtful accounts at December 31, 2013 1,450 Accounts receivable deemed worthless and written off during 2014 1,800 During 2014, Fess estimated that its provision for bad debts should be 1% of all credit sales. As a result of a review and aging of accounts receivable in early January 2015, it has been determined that an allowance for doubtful accounts of $1,600 is needed at December 31, 2014. Required: 1. What is the total amount that Fess should record as provision for bad debts for the year ended December 31, 2014? 2. Show the journal entries affecting the Allowance for doubtful accounts that Fess made during 2014.

May 22 2020 View more View Less

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