Winfrey Designs had an unadjusted credit balance in its Allowance for Doubtful Accounts at December 31, 2023, of $2,050. Required: a. Prepare the adjusting entry assuming that Winfrey estimates December 31, 2023 Accounts Receivable $140,000 40,000 9,500 2,200 View transaction list Age of Accounts Receivable Not due (under 30 days) 1 to 30 days past due 31 to 60 days past due Over 60 days past due Journal entry worksheet Record the estimate for uncollectible accounts. suncollectible accounts based on an aging analysis as follows. Expected Percentage Uncollectible 2% 4% 10% 60%
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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