Reporting Uncollectible Accounts and Accounts Receivables (FSET)

Mohan Company estimates its uncollectible accounts by aging its accounts receivable and applying percentages to various aged categories of accounts. Mohan computes a total of $4,200 in estimated losses as of December 31. Its Accounts Receivable has a balance of $196,000, and its Allowance for Uncollectible Accounts has an unused balance of $1,000 before adjustment at December 31.

b. Show the effect of the adjustment to the Allowance for Uncollectible Accounts in the financial statement effects template.

Note: Use a negative sign with answers, when appropriate.

Balance SheetIncome StatementCashNoncashContraContributedEarnedNetTransactionAsset+Assets+Assets=Liabilities+Capital+CapitalRevenues-Expenses=IncomeBad debts expense.

0

0

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0

0

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0

3200

-3200

How do I find Contra asset and Earned Capital?