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STALIN [3.7K]
3 years ago
14

Warner Company's year-end unadjusted trial balance shows accounts receivable of $99,000, allowance for doubtful accounts of $600

(credit), and sales of $140,000. Uncollectibles are estimated to be 1% of sales. Prepare the December 31 year-end adjusting entry for uncollectibles.
Mathematics
1 answer:
Burka [1]3 years ago
5 0

Answer:

Bad debt expense Dr ($140,000 × 1%) $1,400

         To Allowance for doubtful debts $1,400

(Being the bad debt expense is recorded)

Step-by-step explanation:

The adjusting entry is shown below:

Bad debt expense Dr ($140,000 × 1%) $1,400

         To Allowance for doubtful debts $1,400

(Being the bad debt expense is recorded)

Here the bad debt expense is debited as it increased the expenses and credited the allowance for doubtful debts as it decreased the assets

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