Question

A yearminusend review of Accounts Receivable and estimated uncollectible percentages revealed the​ following:

Answer 1

Answer:

The Uncollectible Account Expense at year end ​is $9,300

Explanation:

At the end of the year:

Estimated Uncollectible = $60,000 x 3% + $40,000 x 5% + $25,000 x 12% + $7,000 x 50% = $10,300

The company uses aging of receivables ​method. Before adjustment, the credit balance in Allowance for Uncollectible Accounts was $ 1,000. Therefore: Uncollectible Account Expense = $10,300 - $1,000 = $9,300

The entry:

Debit Uncollectible Account Expense $9,300

Credit Allowance for Uncollectible Accounts $9,300