ACC/291 Final Exam

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1) Hahn Company uses the percentage of sales method for recording bad debts expense. For the year, cash sales are 300,000 and credit sales are 1,200,000. Management estimates that 1% is the sales percentage to use. What adjusting entry will Hahn Company make to record the bad debts expense?

Debts Expense 15000 Allowances for Doubtful Accounts 15000

B. Bad Debts Expense 12000 Allowances for Doubtful Accounts 12000

Debts Expense 12,000 Accounts Receivable 12,000

D. Bad Debts Expense 15,000 Accounts Receivable 15,000

2)Using the percentage of receivables method for recording bad debts expense, estimated uncollectible accounts are 15,000. If the balance of the Allowance for...