At December 31, 2016, before any year-end adjustments are made, White Corporation had a $50 balance in Accounts Receivable and a $0.6 debit balance in the Allowance for Uncollectible Accounts.

Requirements

1. What is the normal balance in the Allowance for Uncollectible Accounts? What would cause this account to have a debit balance?

2. How does management determine the amount of uncollectible accounts?

3. The aging of receivables indicates that White Corporation will not collect $1.5 million of its accounts receivables. Prepare the journal entry to record the bad debt expense for 2016?