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Question 3 [12 points] At year-end, December 31, 2014 Bentley Inc. showed unadjusted balances of : $215,000 in Accounts Receivable; $4,700 credit in Allowance for
Question 3 [12 points]
At year-end, December 31, 2014 Bentley Inc. showed unadjusted balances of : $215,000 in Accounts Receivable; $4,700 credit in Allowance for Doubtful Accounts; and $975,000 in Sales. Uncollectible accounts are estimated to be 1.5% of sales.
Question 3 [12 points] At year-end, December 31, 2014 Bentley Inc. showed unadjusted balances of : $215,000 in Accounts Receivable; $4,700 credit in Allowance for Doubtful Accounts; and $975,000 in Sales. Uncollectible accounts are estimated to be 1.5% of sales. At December 31, 2015, the General Ledger showed unadjusted balances of : $290,000 in Accounts Receivable; $6,600 debit in Allowance for Doubtful Accounts; and $1,225,000 in Sales. Bentley Inc. prepared an aging analysis on December 31, 2015, that estimated total uncollectible accounts to be $13,300. Unadjusted balances at December 31, 2016 were : $215,000 in Accounts Receivable; $4,800 debit in Allowance for Doubtful Accounts; and $1,025,000 in Sales. Uncollectible accounts are estimated to be 5% of outstanding accounts receivable. Use this information to prepare the 2014, 2015, and 2016 year-end adjusting entries to estimate uncollectible accounts. Enter an appropriate description for each journal entry. T-accounts have been provided for your calculations, but will not be marked. Accounts Receivable Allowance for Doubtful Accounts General Journal Account/Explanation Page Gj1 Debit Credit Date 2014 2015 2016Step by Step Solution
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