Sample content Complete Problems P8 – 2B PROBLEM 8-2B (a) 1. Accounts Receivable 3,600,000 Sales Income 3,600,000 2. Sales Returns and Allowances 50,000 Accounts Receivable 50,000 3. Cash 3,100,000 Accounts Receivable 3,100,000 4. Allowance for Doubtful Accounts 92,000 Accounts Receivable 92,000 5. Accounts Receivable 28,000 Allowance for Doubtful Accounts 28,000 Cash 28,000 Accounts Receivable 28,000 (b) Accounts Receivable Allowance for Doubtful Accounts Bal. 960,000 (2) 50,000 (4) 92,000 Bal. 78,000 (1) 3,600,000 (3) 3,100,000 (5) 28,000 (5) 28,000 (4) 92,000 Bal. 14,000 (5) 28,000 Bal. 1,318,000 (c) Balance required $109,000 Balance before adjustment [see (b)] 14,000 Adjustment required $ 95,000 The journal entry would therefore be as under: Bad Debts Expenditure 95,000 Allowance for Doubtful Accounts 95,000 PROBLEM 8-2B (Continued) (d) *$960,000 – $78,000 **$1,318,000 – $109,000