Question
On December 31, Ferndale Enterprises has an $800 debit balance in Allowance for Uncollectible Accounts. If an accounts receivable aging method analysis indicated that an
"On December 31, Ferndale Enterprises has an $800 debit balance in Allowance for Uncollectible Accounts. If an accounts receivable aging method analysis indicated that an estimated $6,400 of December 31 receivables were uncollectible, for what amount would the adjusting entry for uncollectible accounts be recorded? (Show your work to receive credit)."
This is NOT asking for the ending balance of the Uncollectible account, it is asking for the adjusting entry. Make a T-account and see if you can figure out the correct entry. You must show your work and clearly identify your answer to earn credit. |
*********I need to show the T-accounts but I am really confused as to how to create the T-accounts that give me the correct answer of $7,200
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