warner companys year - end unadjusted trial balance shows accounts receivable of $104,000, all $650…
warner companys year - end unadjusted trial balance shows accounts receivable of $104,000, all $650 (credit), and sales of $330,000. uncollectibles are estimated to be 1% of sales. prepare the december 31 year - end adjusting entry for uncollectibles. journal entry worksheet record the estimate of uncollectibles. note: enter debits before credits. date general journal debit credit december 31 bad debts expense allowance for doubtful accounts
Answer
Explanation:
Step1: Calculate bad - debts expense
The uncollectibles are estimated as 1% of sales. Sales are $330,000. So, the bad - debts expense is $330,000\times0.01 = 3300$.
Step2: Prepare adjusting entry
The adjusting entry on December 31 will debit Bad debts expense for the estimated uncollectibles and credit Allowance for doubtful accounts.
| Date | General Journal | Debit | Credit |
|---|---|---|---|
| December 31 | Bad debts expense | $3300$ | |
| Allowance for doubtful accounts | $3300$ |
Answer:
| Date | General Journal | Debit | Credit |
|---|---|---|---|
| December 31 | Bad debts expense | $3300$ | |
| Allowance for doubtful accounts | $3300$ |