Connect Saved QS 76 Percent of accounts receivable method LO

Connect Saved QS 7-6 Percent of accounts receivable method LO P3 Warner Company\'s year-end unadjusted trial balance shows accounts receivable of S113,000, allowance for doubtful accounts of $740 (creo. and sales of $420,000. Uncollectibles are estimated to be t50% of accounts receivable. 1. Prepare the December 31 year-end adjusting entry for uncollectibles. View transaction list Journal entry worksheet Record the estimate of uncollectibles. Note: Enter debits before credits Dec 31 Record entry Clear entry 2 What amount wouild have been used in the year-end adjusting entry if the alowance account had a year-end unadjusted debit balance of St1000

Solution

1.

2. Amount used in the year-end adjusting entry = ($113,000 * 1.50%) + $1,000 = $2,695

Date	General Journal	Debit	Credit
Dec. 31	Bad debts expense[($113,000 * 1.50%) - $740]	$955
	Allowance for doubtful accounts		$955