A company has the following balances on December 31, Year 1,
before any adjustment: Accounts Receivable = $42,000; Allowance for
Uncollectible Accounts = $1,000 (credit). On December 31,
Year 1, the company estimates uncollectible accounts to be 20% of
1. Record the adjusting entry for uncollectible
accounts on December 31, Year 1. (If no entry is required
for a particular transaction/event, select "No Journal Entry
Required" in the first account field.)
2. Determine the amount at which bad debt
expense is reported in the income statement and the allowance for
uncollectible accounts is reported in the balance sheet.
3. Calculate net accounts receivable.
Get Answers For Free
Most questions answered within 1 hours.