At the end of the year, a company has the following accounts receivable and estimates of uncollectible accounts: 1. Accounts not yet due = $88,000; estimated uncollectible = 4%. 2. Accounts 1 to 30 days past due = $30,000; estimated uncollectible = 25%. 3. Accounts more than 30 days past due - $7,000; estimated uncollectible = 60%. Required: Record the year-end adjusting entry for uncollectible accounts, assuming the current balance of the Allowance for Uncollectible Accounts is $870 (credit). (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
At the end of the year, a company has the following accounts receivable and estimates of uncollectible accounts: 1. Accounts not yet due = $88,000; estimated uncollectible = 4%. 2. Accounts 1 to 30 days past due = $30,000; estimated uncollectible = 25%. 3. Accounts more than 30 days past due - $7,000; estimated uncollectible = 60%. Required: Record the year-end adjusting entry for uncollectible accounts, assuming the current balance of the Allowance for Uncollectible Accounts is $870 (credit). (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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.
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Transcribed Image Text:Journal entry worksheet
<
1
Record the bad debt expense.
Note: Enter debits before credits.
Event
1
General Journal
Bad Debt Expense
Record entry
Clear entry
Debit
Credit
View general journal
Transcribed Image Text:At the end of the year, a company has the following accounts receivable and estimates of uncollectible accounts:
1. Accounts not yet due $88,000; estimated uncollectible = 4%.
=
2. Accounts 1 to 30 days past due = $30,000; estimated uncollectible = 25%.
3. Accounts more than 30 days past due = $7,000; estimated uncollectible = 60%.
Required:
Record the year-end adjusting entry for uncollectible accounts, assuming the current balance of the Allowance for
Uncollectible Accounts is $870 (credit). (If no entry is required for a particular transaction/event, select "No Journal Entry
Required" in the first account field.)
View transaction list
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