Brief Exercise 7-5 (Part Level Submission) Wilton, Inc. had net sales in 2014 of

Question

Brief Exercise 7-5 (Part Level Submission)

Wilton, Inc. had net sales in 2014 of $1,420,600. At December 31, 2014, before adjusting entries, the balances in selected accounts were: Accounts Receivable $214,800 debit, and Allowance for Doubtful Accounts $3,250 credit.

Date

Account Titles and Explanation

Debit

Credit

allowance for doubtful accounts

Brief Exercise 7-5 (Part Level Submission)

Wilton, Inc. had net sales in 2014 of $1,420,600. At December 31, 2014, before adjusting entries, the balances in selected accounts were: Accounts Receivable $214,800 debit, and Allowance for Doubtful Accounts $3,250 credit.

Assume that 11% of accounts receivable will prove to be uncollectible. Prepare the entry to record bad debt expense. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) I got the first answer which is 20,378. I just don't know what to put for allowance for doubtful accounts.

Date

Account Titles and Explanation

Debit

Credit

December 31, 2014

bad debt expense

allowance for doubtful accounts

Explanation / Answer

Statement showing computations Particulars Amount Accounts Receivable        214,800.00 Accounts expected to be uncollectible @11%          23,628.00 Existing balance in Allowance for Doubtful Accounts              3,250.00 New provision required          20,378.00 Particulars Dr Amt Cr Amt Bad debts Expense          20,378.00 To Allowance for doubtful Accounts                20,378.00

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

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