Meman xamA company's year-end unadjusted trial balance reports sales of $290,000, accounts receivable of $100,000, and allowance fordoubtful accounts with a credit balance of $610. The company estimates uncollectibles to be 1.50% of accounts receivable.Enter answers in the tabs below.Required 1 Required 2Record the entry for the December 31 year-end adjusting entry for uncollectibles.View transaction listJournal entry worksheet1Record the estimate of uncollectibles.Note: Enter debits before credits.DateDecember31General JournalDebitCreditRecord entryClear entryView general journal

Allowance for doubtful accounts: - Allowance for doubtful accounts is determined as the reduction in…

A company's year-end unadjusted trial balance reports sales of $290,000, accounts receivable of $100,000, and allowance doubtful accounts with a credit balance of $610. The company estimates uncollectibles to be 1.50% of accounts receivable.

A company's year-end unadjusted trial balance reports sales of $290,000, accounts receivable of $100,000, and allowance doubtful accounts with a credit balance of $610. The company estimates uncollectibles to be 1.50% of accounts receivable.

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter14: Accounting For Uncollectible Accounts Receivable

Section14.1: Uncollectible Accounts Receivable

Problem 1OYO

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UNCOLLECTIBLE ACCOUNTSPERCENTAGE OF SALES AND PERCENTAGE OF RECEIVABLES At the end of the current year, the accounts receivable account of Parkers Nursery Supplies has a debit balance of 350,000. Credit sales are 2,300,000. Record the end-of-period adjusting entry on December 31, in general journal form, for the estimated uncollectible accounts. Assume the following independent conditions existed prior to the adjustment: 1. Allowance for Doubtful Accounts has a credit balance of 1,920. (a) The percentage of sales method is used and bad debt expense is estimated to be 1% of credit sales. (b) The percentage of receivables method is used and an analysis of the accounts produces an estimate of 24,560 in uncollectible accounts. 2. Allowance for Doubtful Accounts has a debit balance of 1,280. (a) The percentage of sales method is used and bad debt expense is estimated to be of 1% of credit sales. (b) The percentage of receivables method is used and an analysis of the accounts produces an estimate of 22,440 in uncollectible accounts.
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