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By the end of 201 cash collections on these accounts to $100 0 Pave estimates 30

ID: 341800 • Letter: B

Question

By the end of 201 cash collections on these accounts to $100 0 Pave estimates 30% of the uncollected During 2018, its st year o operations, Pave Construction provides services on account of $140 000 accounts will be bad debts. a Required: 1. Record the adjustment for uncollectible accounts on December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list ournal entry worksheet Record the adjustment entry for Uncollectible Accounts. Note: Enter debits before credits. Date General Journal DebitCredit December 31, 2018 Record entry Clear entry View general journal

Explanation / Answer

Answer:

First of all we need to find out the adjusted amount of uncollectable account as of Dec-31,2018

adjusted amount of uncollectable account

=(140,000-100,000) x 30%

=40,000 x30 %

=$12000

Date

Description

Debit $

Credit$

31-Dec

Bad debt Expanses

12000

2018

Allowance for doubtful accounts

12000

(to record the bad debt expanses)

_______________________________

Total accounts receivable

40,000

Less:

Allowance for uncollectible accounts

-12000

Net realizable value

28,000

Date

Description

Debit $

Credit$

31-Dec

Bad debt Expanses

12000

2018

Allowance for doubtful accounts

12000

(to record the bad debt expanses)