Question

At the end of the current year, Accounts Receivable has a balance of $4,375,000; Allowance for Doubtful Accounts has a debit balance of $21,300; and sales for the year total $102,480,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $205,000.
a. Determine the amount of the adjusting entry for uncollectible accounts.

Answer 1

Answer:

$226,300

Step-by-step explanation:

Given Allowance for Doubtful Accounts is estimated as $205,000 and Allowance for Doubtful Accounts has a debit balance of $21,300

#The  amount of the adjusting entry for uncollectible accounts is calculated as below:

$Adjustment \ Cost=Allowance\ Doubtful\ Accounts +Doubtful \ Accounts \ Debit \ Balance\\\\=205000+21300\\\\\ 226,300$

Hence,  the amount of the adjusting entry for uncollectible accounts is $226,300