Part-1 Computation of Estimated Uncollectible - Dhaliwal
Account Receivable (a% of uncollectible (b)Uncollectible amount (a*b)
Not Due $1,00,000.00 1% $1,000.00
1 to 30 $38,000.00 2% $760.00
31 to 60 $17,000.00 4% $680.00
61 to 90 $14,000.00 6% $840.00
over 90 $16,000.00 10% $1,600.00
Estimated Balance of allowance for uncollectible $1,85,000.00 $4,880.00
Part 2: Journal Entry
Account Titles and Explanation Debit Credit
Bad Debt Expenses
(4880-3000) $1,880.00
Allowance for doubtful accounts $1,880.00
An account may be the document in a gadget of accounting wherein a business records debits and credits as proof of accounting transactions. as a consequence, the bills receivable account shops information approximately billings to customers, as well as reductions of those billings due to payments from clients.
3 specific types of debts in accounting are actual, private, and Nominal Accounts. the real account is then categorized into subcategories – Intangible real account, Tangible actual account. additionally, 3 distinct sub-forms of non-public accounts are natural, representative, and synthetic.
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