Problem 8-7A Uncollectible accounts LO2, 3

Aaron Servicing showed the following partial unadjusted results at October 31, 2020, its year-end: need before 12 est today if you could get it done quickly id appreciate it and will make sure to thumbs up

Account	Debit		Credit
Sales			$	1,670,000
Accounts receivable	$	150,000
Allowance for doubtful accounts		3,200

Part 1 Required: a. Assuming Aaron estimates bad debts to be 1.5% of sales, prepare the adjusting entry at October 31, 2020.

• Record the estimate for uncollectible accounts.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Oct 31, 2020

b. Show how accounts receivable would be shown on the October 31, 2020, balance sheet using your calculations in (a).

partial balance sheet

dr cr

assets

current assets

Part 2 Required: c. Instead of (a), assume that Aaron estimates bad debts to be 5% of outstanding accounts receivable. Prepare the adjusting entry at October 31, 2020.

Journal entry worksheet

• Record the estimate for uncollectible accounts.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Oct 31, 2020

d. Show how accounts receivable would be shown on the October 31, 2020, balance sheet using your calculations in (c).

partial balance sheet

dr cr

assets

current assets