Sanders Inc. is a small brick manufacturer that uses the direct write-off method to account for uncollectible accounts. At the end of 2021, its balance for Accounts Receivable is $37,000. The company estimates that of this amount, $4,400 is not likely to be collected in 2022. In 2022, the actual amount of bad debts is $3,200.

Record, if necessary, an adjustment for estimated uncollectible accounts at the end of 2021 and the actual bad debts in 2022. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Journal entry worksheet

1. Record the adjusting entry for estimated uncollectible accounts at the end of 2021.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
December 31, 2021

2. Record the adjusting entry for actual bad debts in 2022.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
December 31, 2022