5 Carlton Company uses the percent of sales method to estimate its bad debt expense. Based on past experience, the company estimates 2 percent of credit sales to be uncollectible. At the end of the current year, the company's unadjusted trial balance shows Accounts Receivable of $245,000 and Credit Sales of $900,000. Prepare the necessary December 31 adjusting entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns. View transaction list Journal entry worksheet 1 ces Carlton Company uses the percent of sales method to estimate its bad debt expense. Based on past experience, the company estimates 2 percent of credit sales to be uncollectible. At the end of the current year, the company's unadjusted trial balance shows Accounts Receivable of $245,000 and Credit Note: Enter debits before credits. Date Dec. 31 General Journal Debit Credit Knowledge Check 01 The goal of the accounts receivable methods is to adjust the Allowance for Doubtful Accounts balance so that The unadjusted balance is equal to the estimate of the uncollectible accounts receivable. The adjusted balance is equal to the estimate of the uncollectible accounts receivable. The adjusted balance is equal to the estimate of the uncollectible sales. The unadjusted balance is equal to the ending accounts receivable balance. Grey Corporation has $100,000 of accounts receivable on December 31. The unadjusted balance of its Allowance for Doubtful Accounts is a credit of $1,000. Experience suggests 5 percent of its receivables will be uncollectible. The amount that should be debited to Bad Debt Expense and credited to Allowance for Doubtful Accounts in the year-end adjusting entry is: $1,000 $2,070 $5,000 $6,000 $4,000 Bailey Company has $200,000 of accounts receivable on December 31. The unadjusted balance of its Allowance for Doubtful Accounts is a debit of $9,000. An aging of its accounts receivable suggests that $12,000 of its receivables will be uncollectible. The amount that should be debited to Bad Debt Expense and credited to Allowance for Doubtful Accounts in the year-end adjusting entry- is $3,000 $21,000 $9,000 $14,000 $23,000 Grey Corporation has $100,000 of accounts receivable on December 31. The unadjusted balance of its Allowance for Doubtful Accounts is a debit of $1,000. Experience suggests 5 percent of its receivables will be uncollectible. The amount that should be debited to Bad Debt Expense and credited to Allowance for Doubtful in the year-end adjusting entry is: $1,000 $2,070 $5,000 $6,000 $4,000 At year-end December 31, Chan Company estimates its bad debts as 0.20% of its annual credit sales of $758,000. Chan records its bad debts expense for that estimate. On the following February 1, Chan decides that the $379 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. 1 2 3 4 Record the estimated bad debts expense. Note: Enter debits before credits. Date December 31 General Journal Debit Credit Record entry. Clear entry. View general journal es Wrote off P. Park's account as uncollectible. Note: Enter debits before credits. Date: February 01 General Journal Debit Credit Record entry Clear entry View general journal 1 2 3 4 Reinstated Park's previously written off account. Note: Enter debits before credits. Date June 05 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet