Thunderwood Industries has computed that the proper balance

Thunderwood Industries has computed that the proper balance for the Allowance for Doubtful Accounts at August 31 is $74,170. Assume that the allowance for doubtful accounts for Thunderwood Industries has a credit balance of $6,350 before adjustment on August 31

Journalize the adjusting entry for uncollectible accounts as of August 31

Solution

Hi,

Please find the detailed answer as follows:

August 31:

Bad Debt Expense (74170 - 6350) Dr. 67820

Allowance for Doubtful Debts Cr. 67820

Thanks.