BioWare's year-end unadjusted trial balance shows accounts receivable of $31,000 and sales of $420,000. Uncollectibles are estimated to be 2% of sales. Prepare the December 31 year- end adjusting entry for uncollectibles using the percent of sales method.
BioWare's year-end unadjusted trial balance shows accounts receivable of $31,000 and sales of $420,000. Uncollectibles are estimated to be 2% of sales. Prepare the December 31 year- end adjusting entry for uncollectibles using the percent of sales method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:BioWare's year-end unadjusted
trial balance shows accounts
receivable of $31,000 and sales
of $420,000. Uncollectibles are
estimated to be 2% of sales.
Prepare the December 31 year-
end adjusting entry for
uncollectibles
using the percent
of sales method.
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