Record the adjusting entry for the Karr Company as of December 31, the end of th
ID: 2502359 • Letter: R
Question
Record the adjusting entry for the Karr Company as of December 31, the end of the fiscal year, assuming that Allowance for Doubtful Accounts has a credit balance of $1500.00. The answer should have two lines showing description, debit, and credit.
Please use the following to aid in your answer:
ESTIMATED UNCOLLECTIBLE ACCOUNTS
ESTIMATED %
ALLOWANCE FOR
AMOUNT
UNCOLLECTIBLE
DOUBTFUL ACCOUNTS
NOT DUE
$56,000.00
1
560
0-30 DAYS PAST DUE
$36,000.00
5
1800
31-60 DAYS PAST DUE
$29,000.00
9
2610
61-180 DAYS PAST DUE
$6,000.00
19
1140
OVER 180 DAYS PAST DUE
$1,800.00
TOTALS
6110
ESTIMATED UNCOLLECTIBLE ACCOUNTS
ESTIMATED %
ALLOWANCE FOR
AMOUNT
UNCOLLECTIBLE
DOUBTFUL ACCOUNTS
NOT DUE
$56,000.00
1
560
0-30 DAYS PAST DUE
$36,000.00
5
1800
31-60 DAYS PAST DUE
$29,000.00
9
2610
61-180 DAYS PAST DUE
$6,000.00
19
1140
OVER 180 DAYS PAST DUE
$1,800.00
TOTALS
6110
Explanation / Answer
JOURNAL ENTRY:-
DEBIT ALLOWANCE FOR BAD DEBT EXPENSES [6110-1500] =4610
CREDIT ALLOWANCE FOR DOUBTFUL ACCOUNTS = 4610
JOURNAL ENTRY:-
DEBIT ALLOWANCE FOR BAD DEBT EXPENSES [6110-1500] =4610
CREDIT ALLOWANCE FOR DOUBTFUL ACCOUNTS = 4610
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.