Wilcox Mills is a manufacturer that makes all sales on 30-day credit terms. Annual sales are approximately $30 million. At the end of year 1, accounts receivable were presented in the company's balance sheet as follows. Accounts receivable from clients $ 3,100,000 Less: Allowance for doubtful accounts 80,000 During year 2, $180,000 of specific accounts receivable were written off as uncollectible. Of these accounts written off, receivables totaling $18,000 were subsequently collected. At the end of year 2, an aging of accounts receivable indicated a need for a $242,000 allowance to cover possible failure to collect the accounts currently outstanding. Wilcox Mills makes adjusting entries for uncollectible accounts only at year-end. What is the The adjusting entry required at December 31, year 2, to increase the Allowance for Doubtful Accounts to $242,000.? Debit Uncollectale account expense Credit Allowance for doubtlful account by how much? The answer is not 144,000 is not not 422,000 is not 162,000 is not 1,062,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Wilcox Mills is a manufacturer that makes all sales on 30-day credit terms. Annual sales are approximately $30 million. At the end of year 1, accounts receivable were presented in the company's balance sheet as follows.

 

         
Accounts receivable from clients   $ 3,100,000  
Less: Allowance for doubtful accounts     80,000  
 

 

During year 2, $180,000 of specific accounts receivable were written off as uncollectible. Of these accounts written off, receivables totaling $18,000 were subsequently collected. At the end of year 2, an aging of accounts receivable indicated a need for a $242,000 allowance to cover possible failure to collect the accounts currently outstanding.

Wilcox Mills makes adjusting entries for uncollectible accounts only at year-end.

What is the The adjusting entry required at December 31, year 2, to increase the Allowance for Doubtful Accounts to $242,000.?    Debit Uncollectale account expense    Credit Allowance for doubtlful account  by how much? The answer is not 144,000  is not not 422,000 is not 162,000 is not 1,062,000

 

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