T-Shirt Trends uses the allowance method of accounting for uncollectible accounts. At the end of the fiscal period, the following accounts appeared on T-Shirt’s trial balance. 

Instructions

On the forms provided in your working papers:

1. Determine the amount of the adjustment for uncollectible accounts for the fiscal period ended December 31. Management estimates that uncollectible accounts will be 1.25% of net sales.

2. Journalize the adjusting entry in the general journal, page 10.

3. Post the adjusting entry to the general ledger accounts. 

4. Determine the book value of accounts receivable.

Transcribed Image Text:

Accounts Receivable Allowance for Uncollectible Accounts Sales Sales Discounts Sales Returns and Allowances Uncollectible Accounts Expense $ 18,647.25 1,060.50 452,612.00 5,431.35 13,578.36 0.00