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A corporation which uses the allowance method of accounting for uncollectible accounts receivable estimates uncollectible accounts...

A corporation which uses the allowance method of accounting for uncollectible accounts receivable estimates uncollectible accounts as 3% of accounts receivable. The balance in the allowance for bad debts account, before adjusting, was a debit balance of $18,000. Accounts Receivable at the end of the year is $800,000. What is the adjusting entries that should be made at year end?

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A corporation
Amount $ Adjusting entry
Accounts Receivable       800,000.00 Date Account
Debit $
Credit $
Uncollectible % 3% 31-Dec-19 Bad Debt Expense 42,000.00
Uncollectible amount         24,000.00 Allowance for bad debts account 42,000.00
Add: Debit balance in Allowance for bad debts account         18,000.00
Bad Debt Expense         42,000.00
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