Answer:
1. December 31, 2021
Dr Uncollectible amounts $12,500
Cr Allowance uncollectible amounts $12,500
2a. Dr Allowance uncollectible amounts $10,000
Cr Accoutns receivables $10,000
2b $2,500
Explanation:
1. Preparation to Record the adjusting entry for uncollectible accounts on December 31, 2021.
December 31, 2021
Dr Uncollectible amounts $12,500
Cr Allowance uncollectible amounts $12,500
[($60,000-$110,000)*25%]
(To record allowance)
2a. Preparation of the journal entry to Record the write-off of accounts receivable in 2022
Dr Allowance uncollectible amounts $10,000
Cr Accoutns receivables $10,000
(To Record the write-off of accounts receivable in 2022)
2b. Calculation to determine the balance of Allowance for Uncollectible Accounts at the end of 2022
Balance of the allowance accounts=[ 60,000-110,000)*25%] -$10,000
12,500 - 10,000 = 2,500
allowance uncollectible amounts 15,000 debit
accoutns receivables 15,000 credit
--to record write-off 2022--
