The general ledger account for Accounts Receivable shows a debit balance of $25,
ID: 2471573 • Letter: T
Question
The general ledger account for Accounts Receivable shows a debit balance of $25,000. Allowance for Uncollectible Accounts has a credit balance of $1,500. Net sales for the year were $250,000. In the past, 3 percent of sales have proved uncollectible, and an aging of accounts receivable resulted in an estimate of $10,000 of uncollectible accounts receivable.
Using the accounts receivable aging method, the entry to record the Uncollectible Accounts Expense is:
Uncollectible Accounts Expense 10,750
Allowance for Uncollectible Accounts 10,750
Uncollectible Accounts Expense 8,500
Allowance for Uncollectible Accounts 8,500
Uncollectible Accounts Expense 11,500
Allowance for Uncollectible Accounts 11,500
Uncollectible Accounts Expense 10,000
Allowance for Uncollectible Accounts 10,000
Uncollectible Accounts Expense 10,750
Allowance for Uncollectible Accounts 10,750
Uncollectible Accounts Expense 8,500
Allowance for Uncollectible Accounts 8,500
Uncollectible Accounts Expense 11,500
Allowance for Uncollectible Accounts 11,500
Uncollectible Accounts Expense 10,000
Allowance for Uncollectible Accounts 10,000
Explanation / Answer
AS PER THE AGEING OF ACCOUNTS RECEIVABLE EASTMATE WE NEED $10000 CREDIT BALANCE IN THE ALLOWANCES FOR UNCOLLECTIBLE ACCOUNTS.
WE HAVE ALREADY $1500 CREDIT BALANCE IN ALLOWANCES FOR UNCOLLECTIBLE ACCOUNTS.
SO THE BALANCE NOW TO BE CHARGED ($10,000 - $1500) = $8500
THE JOURNAL WILL BE
UNCOLLECTIBLE ACCOUNTS EXPENSE 8,500
ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS 8,500
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.