Kirchhoff Industries has computed that the proper balance for the Allowance for Doubtful Accounts at August 31 is $140,434. Assume that the allowance for doubtful accounts for Kirchhoff Industries has a credit balance of $6,971 before adjustment on August 31. Required: Journalize the adjusting entry for uncollectible accounts as of August 31. Refer to the chart of accounts for the exact wording of the account titles.
Kirchhoff Industries has computed that the proper balance for the Allowance for Doubtful Accounts at August 31 is $140,434. Assume that the allowance for doubtful accounts for Kirchhoff Industries has a credit balance of $6,971 before adjustment on August 31. Required: Journalize the adjusting entry for uncollectible accounts as of August 31. Refer to the chart of accounts for the exact wording of the account titles.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
CHART OF ACCOUNTS |
Kirchhoff Industries |
General Ledger |
Assets
110 | Cash |
111 | Petty Cash |
120 | |
129 | Allowance for Doubtful Accounts |
131 | Interest Receivable |
132 | Notes Receivable |
141 | Merchandise Inventory |
145 | Office Supplies |
146 | Store Supplies |
151 | Prepaid Insurance |
181 | Land |
191 | Store Equipment |
192 | |
193 | Office Equipment |
194 | Accumulated Depreciation-Office Equipment |
LIABILITIES | |
210 | Accounts Payable |
211 | Salaries Payable |
213 | Sales Tax Payable |
214 | Interest Payable |
215 | Notes Payable |
EQUITY | |
310 | Owner, Capital |
311 | Owner, Drawing |
312 | Income Summary |
REVENUE | |
410 | Sales |
610 | Interest Revenue |
EXPENSES | |
510 | Cost of Merchandise Sold |
520 | Sales Salaries Expense |
521 | Advertising Expense |
522 | Depreciation Expense-Store Equipment |
523 | Delivery Expense |
524 | Repairs Expense |
529 | Selling Expenses |
530 | Office Salaries Expense |
531 | Rent Expense |
532 | Depreciation Expense-Office Equipment |
533 | Insurance Expense |
534 | Office Supplies Expense |
535 | Store Supplies Expense |
536 | Credit Card Expense |
537 | Cash Short and Over |
538 | |
539 | Miscellaneous Expense |
710 | Interest Expense |

Transcribed Image Text:Kirchhoff Industries has computed that the proper balance for the Allowance for Doubtful Accounts at August 31 is $140,434. Assume that the allowance for doubtful accounts for
Kirchhoff Industries has a credit balance of $6,971 before adjustment on August 31.
Required:
Journalize the adjusting entry for uncollectible accounts as of August 31. Refer to the chart of accounts for the exact wording of the account titles.

Transcribed Image Text:JOURNAL
ACCOUNTING EQUATION
DATE
DESCRIPTION
POST. REF.
DEBIT
CREDIT
ASSETS
LIABILITIES
EQUITY
1
2
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