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Brief Exercise 7-6 (Part Level Submission) Answer the following independent questions. Collapse question part (a) Cullumber,...

Brief Exercise 7-6 (Part Level Submission) Answer the following independent questions. Collapse question part (a) Cullumber, Inc. had net sales in 2017 of $1,464,200. At December 31, 2017, before adjusting entries, the balances in selected accounts were Accounts Receivable $248,800 debit, and Allowance for Doubtful Accounts $1,807 debit. Assume that 10% of accounts receivable will prove to be uncollectible. Prepare the entry to record bad debt expense. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2017

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Answer #1
Ans. Un collectible estimated balance =   Accounts receivable * Un collectible percentage
$248,800 * 10%
$24,880
*Allowance for doubtful accounts = Estimated un collectible balance + Unadjusted debit balance
$24,880 + $1,807
$26,687
Date General Journal Debit Credit
31-Dec-17 Bad debts expense $26,687
Allowance for doubtful accounts $26,687
(being adjusting entry made )
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