1. Rainbow Company uses the balance sheet approach to estimate uncollectible accounts. By aging the customers' accounts, it was estimated that $7,325 of the company's month-end accounts receivable would prove to be uncollectible. Calculate the amount that should be debited to the Uncollectible Accounts Expense account in the month-end adjusting entry under each of the following independent assumptions:

A) Under the following independent assumptions, calculate the amount needed as the debit to the Uncollectible Accounts Expense account.

1. Before making any adjustment, the Allowance for Doubtful accounts has a $635 credit balance. $__6690______________

2. Before making any adjustment, the Allowance for Doubtful accounts has a debit

balance of $720 $____8045___________

B) Prepare the year-end adjusting entry for the uncollectible accounts using each of the

above answers.

JE for (A1)
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JE for (A2)
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