Wecker Companys year-end unadjusted trial balance shows accounts receivable of $89,000, allowance for doubtful accounts of $500
Question:
Wecker Company’s year-end unadjusted trial balance shows accounts receivable of $89,000, allowance for doubtful accounts of $500 (credit), and sales of $270,000. Uncollectibles are estimated to be 1.5%
of accounts receivable.
1. Prepare the December 31 year-end adjusting entry for uncollectibles.
2. What amount would have been used in the year-end adjusting entry if the allowance account had a year-end unadjusted debit balance of $200?
3. Assume the same facts as in part 1, except that Wecker estimates uncollectibles as 1.0% of sales.
Prepare the December 31 year-end adjusting entry for uncollectibles. lop5
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: