- Uncollectible Accounts-Percentage of Sales and Percentage of Receivables At th
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Question
- Uncollectible Accounts-Percentage of Sales and Percentage of Receivables At the end of the arrent year, the accounts receivable account of Parker's Nursery Supplies has a debit balance of $331.940·Creda sales are 12,720.000. Record the end-of- period adjusting entry on December 31, in general journal form, for the estimated uncollectible accounts. Assume the following independent conditions existed prior to the adjustment 1. Allowance for Doubtful Accounts has a credit balance of $1,870 a. The percentage of sales method is used and bad debt expense is estimated to be 1% of credit sales ran amount bar does not rea re an entry, leave i, uk Page: 1 ACCOUNT TITLEO. REF DO POST DEBIT CREDIT DATE 1 20.. Dec. 31 b. The percentage of receivables method is used and an analysis of the accounts produces an estimate of $24,990 in uncollectible accounts. If an amount box does not require an entry, leave it blank Page: 1 00 POST. DEBIT CREDI DATE ACCOUNT TITLE C POST 1 20.. Dec. 31 2. Allowance for Doubtful Accounts has a debit balance of $1,245 a. The percentage of sales method is used and bad debt expense is estimated to be ¾ of 1% of credit sales. If an amount box does not require an entry, leave it blank. Page: 1 ACCOUNT TITLE 00C ROST ACCOUNT TITLE DOC. POST. DEBIT CREDIT NC. DATE REf.Explanation / Answer
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a. DATE ACCOUNT TITLE DOC. NO. POST. REF. DEBIT CREDIT 20--Dec. 31 Bad debt expense (1% x $2770000) 27700 Allowance for doubtful accounts 27700 (To record bad debt expense) b. 20--Dec. 31 Bad debt expense ($24990 - $1870) 23120 Allowance for doubtful accounts 23120 (To record bad debt expense)Related Questions
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