Question

During 2021, its first year of operations, a company ends the year with accounts receivable of $100,000. The company estimates that 20% of accounts receivable will be uncollectible.

Record the adjustment for uncollectible accounts on December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Journal entry worksheet

Record the adjustment for unrecoverable accounts receivable on December 31,2021.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
Dec 31

Answer 1

	Calculation of Bad Debts Expense at the end of year:-
a	Acounts Receivable	=	$100,000
b.	% accounts receivable estimated to be uncollectible	=	20.00%
c.	Bad Debts Expense (a*b)	=	$20,000
Date	General Journal		Debit	Credit
Dec 31	Bad debts Expense		$              20,000
	Allowance for Uncollectible Accounts			$20,000
	(To record the adjustment for unrecoverable accounts receivable)

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