Assume that the allowance for doubtful accounts for Evers Industries has a credit balance of $8,240 before adjustment on July 31. Journalize the adjusting entry for uncollectible accounts as of July 31. If an amount box does not require an entry, leave it blank. July 31
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
![Adjustment for Uncollectible Accounts
Below is the aging of receivables schedule for Evers Industries.
<
Subtotals
Customer
Boyd Industries
Hodges Company
Kent Creek Inc.
Lockwood Company
Van Epps Company
Totals
Percentage uncollectible
Allowance for Doubtful Accounts
Aging of Receivables Schedule
July 31
Not
Past
Due
1,050,000 600,000
Balance
36,000
11,500
6,600
7,400
13,000
7,400
1,124,500 607,400
106,106
1%
6,074
1-30
Days
Past Due
220,000
13,000
233,000
6,990
31-60
Days
Past Due
115,000
6,600
121,600
12%
14,592
61-90
Days
Past Due
85,000
11,500
96,500
30%
28,950
Over 90
Days
Past Due
30,000
36,000
66,000
75%
49,500
Assume that the allowance for doubtful accounts for Evers Industries has a credit balance of $8,240 before adjustment on July 31.
Journalize the adjusting entry for uncollectible accounts as of July 31. If an amount box does not require an entry, leave it blank.
July 31
4](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F775d54bd-f872-4631-aaed-0626111ff230%2F6388471a-d9d3-4c8c-9d95-69f085b28b19%2F0r4n3u8_processed.jpeg&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
![College Accounting, Chapters 1-27](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
![Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781305088436/9781305088436_smallCoverImage.gif)