What kind of adjustment entries would be made for the following? Amounts due fro

Question

What kind of adjustment entries would be made for the following?

Amounts due from customers totaled $142,000 at 12/31/2017. During the year the company wrote off $7,400 of receivables that were deemed to be uncollectible. An analysis of the receivables revealed that an estimated 3% of the balance will probably not be collected in 2018. There were no uncollectable receivables estimated at 12/31/2016.

Bledsoe Flowers Inc. Trial Balance (Unadjusted) 31-Dec-17 r. r. $38,600 116,200 62,000 179,700 198,200 Cash Accounts receivable, 12/31/16 Inventory, 12/31/16 Investments, at cost Furniture and Fixtures Accumulated depreciation, 12/31/16 Accounts payable, 12/31/16 Capital stock, $10 par value Retained eanings, 12/31/2016 Sales Notes payable, due 3/31/19 Purchases Land improvement expense Salaries expense Payroll Taxes Income tax expense Insurance expense Rent expense Utilities expense Travel and entertainment expense TOTALS $82,400 17,000 50,000 117,000 877,700 200,000 405,100 50,000 174,000 12,400 45,000 8,700 7,400 34,200 12,600 $1,344,100 $1,344,100

Explanation / Answer

Journal entry

Date accounts & explanation debit credit Bad debt expense (142000*3%) 4260 Allowance for doubtful accounts 4260 (To record adjusting entry)

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