31, 20A? 4. If the Estimated Uncollectible Account should be "increased by 2% of the outstanding receivable account, what should be the adjusting entry needed? Sf the Estimated Uncollectible Account should be "increased to" 2% - of the outstanding receivable account, what should be the adjusting entry needed?
31, 20A? 4. If the Estimated Uncollectible Account should be "increased by 2% of the outstanding receivable account, what should be the adjusting entry needed? Sf the Estimated Uncollectible Account should be "increased to" 2% - of the outstanding receivable account, what should be the adjusting entry needed?
31, 20A? 4. If the Estimated Uncollectible Account should be "increased by 2% of the outstanding receivable account, what should be the adjusting entry needed? Sf the Estimated Uncollectible Account should be "increased to" 2% - of the outstanding receivable account, what should be the adjusting entry needed?
Transcribed Image Text:Problem on the Provision for Uncollectible Accounts
The preliminary trial balance of Tagum Traders, owned by Merry Chris Ceniza as
December 31, 20A showed in part the Accounts Receivable and its related Estimated
Uncollectible Accounts:
Debit
Credit
Accounts Receivable
Estimated Uncollectible Account
P 300,000
4,000
1. If at the end of the year, the Estimated Uncollectible Account is to be provided at
3% of its outstanding receivable, what would the amount of adjustment be?
2. What is the required adjusting entry on December 31, 20A?
3. What is the Estimated Realizable Value of the Accounts Receivable as of December
31, 20A?
4. If the Estimated
outstanding receivable account, what should be the adjusting entry needed?
5 If the Estimated Uncollectible Account should be "increased to" 2% - of the
outstanding receivable account, what should be the adjusting entry needed?
Uncollectible Account should be "increased by" 2% of the
Definition Definition Entries made at the end of every accounting period to precisely replicate the expenses and revenue of the current period. This is also known as end of period adjustment. It can also refer to financial reporting that corrects errors made previously in the accounting period. Every adjustment entry affects at least one real account and one nominal account.
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