4. If the Estimated outstanding receivable account, what should be the adjusting entry needed? 7-111.Problem on the Provision for Uncollectible Accounts2.The preliminary trial balance of Tagum Traders, owned by Merry Chris Ceniza as ofDecember 31, 20A showed in part the Accounts Receivable and its related Estimated3.Uncollectible Accounts:DebitCreditP 300,000Accounts ReceivableEstimated Uncollectible Account4,0001. If at the end of the year, the Estimated Uncollectible Account is to be provided at3% 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 December31, 20A?4. If the Estimated Uncollectible Account should be "increased by" 2% of theoutstanding receivable account, what should be the adjusting entry needed?5. If the Estimated Uncollectible Account should be "increased to" 2% - of theoutstanding receivable account, what should be the adjusting entry needed?

Accounts Receivables are those customer accounts to whom business has made credit sales on account…

Answered: 4. If the Estimated outstanding…

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4. If the Estimated outstanding receivable account, what should be the adjusting entry needed?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

4. If the Estimated outstanding receivable account, what should be the adjusting entry needed?

7-11
1.
Problem on the Provision for Uncollectible Accounts
2.
The preliminary trial balance of Tagum Traders, owned by Merry Chris Ceniza as of
December 31, 20A showed in part the Accounts Receivable and its related Estimated
3.
Uncollectible Accounts:
Debit
Credit
P 300,000
Accounts Receivable
Estimated Uncollectible Account
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 Uncollectible Account should be "increased by" 2% of the
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?

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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