Broadway Company reported a balance in Accounts Receivable of $50,000 and a zero balance in the Allowance for Doubtful Accounts. The company’s aging of accounts receivable determined $12,200 to be uncollectible. Prepare the end-of-period adjusting entry to record bad debt expense.

Adjusting Journal

Doubtful Debt $ 12200 (debit)

Accounts Receivable $12200 (credit)

Explanation:

When an amount is noncollectable from an Account Receivable,

The Assets of Accounts Receivable will decline as no future economic benefits are expected to be collected on the amount

The Expense Account - Doubtful Debts must be recognized to record the decrease in economic benefit which will decrease shareholders equity

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.

answer; risk transference;