Brief Exercise 8-10 During its first year of operations, Indigo Corporation had

Question

Brief Exercise 8-10 During its first year of operations, Indigo Corporation had credit sales of $3,213,200, of which $361, 300 remained uncollected at year-end. The credit manager estimates that $16,880 of these receivables will become uncollectible. Your answer is correct. Prepare the journal entry to record the estimated uncollectibles. (Assume an unadjusted balance of zero in Allowance for Doubtful Accounts.) (Credit account tities are automatically indented when amount is entered. Do not indent manualy,) Account Titles and Explanation Debit Credit Bad Debt Expense 16880 Allowance for Doubtful Accounts 16880 SHOW LIST OF ACCOUNTS SHoW ANSWER LINK TO TEXT LINK TO TEXT INTERACTIVE TUTORIAL INTERACTIVE TUTORIAL 7] Your answer is partially correct. Try again.

Explanation / Answer

Indigo Corporation

Balance Sheet (Partial)

December 31,2017

Current assets

Cash $91,990

Accounts receivables                                  $3,61,300

Less: Allowance for doubtful accounts       $16,880 $3,44,420

Merchandise inventory $1,89,180

Prepaid expenses $12,580

Total current assets $6,38,170

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