On January 1 2018 the general ledger of Big Blast Fireworks

On January 1, 2018, the general ledger of Big Blast Fireworks includes the following information:

A/R $44,000

Allowance for uncollectible accounts $3,300

At the end of January, $5,500 of A/R are past due, and the company estimates that 30% of these accounts will not be collected. Of the remaining A/R, the company estimates that 5% will not be collected.

Prepare adjusting journal entry.

Allowance for doubtful accountes estimated = (5500*30%+38500*5%) = 3575

Adjusting journal entry :

Date	accounts & explanation	debit	credit
	Bad debt expense (3575-3300)	275
	Allowance for uncollectible accounts		275
	(To record adjusting entry)

On January 1, 2018, the general ledger of Big Blast Fireworks includes the following information: A/R $44,000 Allowance for uncollectible accounts $3,300 At the

On January 1 2018 the general ledger of Big Blast Fireworks

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