A company has $321,000 in credit sales. the company uses the allowance method to account for uncollectible accounts. the allowa

Question

3 years ago

10

A company has $321,000 in credit sales. the company uses the allowance method to account for uncollectible accounts. the allowa

nce for doubtful accounts now has an $8,150 debit balance. if the company estimates 5% of credit sales will be uncollectible, what will be the amount of the journal entry to record estimated uncollectible accounts?

Business

1 answer:

Mkey [24] · Answer 1 · 2022-09-14T15:16:38+03:00

Mkey [24]3 years ago

6 0

321,000×0.05=16,050

Adjusted balance
16,050+8,150=24200

Journal entry
Bad debt expenses (Dr 16050)
Allowance for doubtful accounts (Cr 16050)

A company has​ $321,000 in credit sales. the company uses the allowance method to account for uncollectible accounts. the allowa

A company has $321,000 in credit sales. the company uses the allowance method to account for uncollectible accounts. the allowa