1. Prepare the journal entry or entries for January 31 2. Prepare the journal en

Question

1. Prepare the journal entry or entries for January 31 2. Prepare the journal entry or entries for March 9; assume no additional ted from Green. Warner Company's year-end unadjusted trial balance shows accounts receivable of $99,000, allowance for doubtful accounts of Sooo (credit and sales of S280.000. Uncollectibles are estimated to be 1.5% of ac- counts receivable 1. Prepare the December 31 year-end adjusting entry for uncollectibles. 2. What amount would have been used in the year-end adjustin g entry if the allowance account had a year-end unadjusted debit balance of $300?

Explanation / Answer

1.december 31 year end adjusting entry for uncollectibles.

note; amount to be credited to allowance for doubtful accounts = accounts receivable * 1.5% - credit balance in allowance account

=>[$99,000 * 1.5%] - $600

=>$1485 - 600

=>$885.

the required journal entry:

2. note: the amount to be credited to allowance for doubtful debts in this case will be =

account receivable * 1.5% + debit balance

=>$99,000 * 1.5% + $300

=>$1485 + 300

=>$1,785.

the following is the required journal entry:

Bad debt expense a/c $885 ................To Allowance for doubtful debts a/c $885

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.