Record the adjusting entry for the Karr Company as of December 31, the end of th

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

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