The amounts in certain accounts on January 1, 1979, and before adjusting entries on December 31, 1979, are shown below:

During 1979, 90 percent of sales were on account. It was estimated that 3 percent of credit sales would become uncollectible. During 1979, one account for \(\$ 1,500\) was collected, although it had been written off as uncollectible during 1978.
a Give the journal entries made during 1979 that explain the changes in the four accounts as listed above.
b Give any adjusting entries required on December 31, 1979.

Transcribed Image Text:

Accounts Receivable Allowance for Uncollectible Accounts. Sales, Uncollectible Accounts Adjustment Sales January 1, 1979 December 31, 1979 $400,000 Dr. 30,000 Cr. $ 480,000 Dr. 20,000 Dr. 0 0 2,000,000 Cr.