Answer
Colonial corporation
Journal entries
A. $2,150 uncollectible of the year end Accounts receivable balance.
Debit Uncollectible Account with $2,150
Credit Account Receivable Account with $2,150
(Being aged debt that is uncollectible at year end)
Debit Allowance for doubtful debt with $200
Credit Uncollectible debt Account with $200
(Being reversal of allowance for doubtful debt no longer required after ageing review of debt)
B. 1% of credit sales is uncollectible
1% of $400,000 = $4,000
Debit Uncollectible Account with $4,000
Credit Account Receivable Account with $4,000
(Being 1% of credit sales that is uncollectible at year end)
Debit Allowance for doubtful debt with $200
Credit Uncollectible debt Account with $200
(Being reversal of allowance for doubtful debt no longer required after ageing review of debt)
C. (assuming a above but allowance for doubtful debt is a debit balance of $200)
i. $2,150 uncollectible of the year end Accounts receivable balance.
Debit Uncollectible Account with $2,150
Credit Account Receivable Account with $2,150
(Being aged debt that is uncollectible at year end)
ii. 1% of credit sales is uncollectible
1% of $400,000 = $4,000
Debit Uncollectible Account with $4,000
Credit Account Receivable Account with $4,000
(Being 1% of credit sales that is uncollectible at year end)
The debit receivable balance could relate to debts once written off but now being paid.
