Uncollectible AccountsPercentage of Sales and Percentage of Receivables

At the end of the current year, the accounts receivable account of Parker's Nursery Supplies has a debit balance of $350,455. Credit sales are $2,616,000. Record the end-of-period adjusting entry on December 31, in general journal form, for the estimated uncollectible accounts. Assume the following independent conditions existed prior to the adjustment:

1. Allowance for Doubtful Accounts has a credit balance of $1,855.

a. The percentage of sales method is used and bad debt expense is estimated to be 1% of credit sales. If an amount box does not require an entry, leave it blank.

Page: 1

	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT
1	20-- Dec. 31						1
2							2
3							3

b. The percentage of receivables method is used and an analysis of the accounts produces an estimate of $23,035 in uncollectible accounts. If an amount box does not require an entry, leave it blank.

Page: 1

	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT
1	20-- Dec. 31						1
2							2
3							3

2. Allowance for Doubtful Accounts has a debit balance of $1,240.

a. The percentage of sales method is used and bad debt expense is estimated to be of 1% of credit sales. If an amount box does not require an entry, leave it blank.

Page: 1

	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT
1	20-- Dec. 31						1
2							2
3							3

b. The percentage of receivables method is used and an analysis of the accounts produces an estimate of $22,455 in uncollectible accounts. If an amount box does not require an entry, leave it blank.

Page: 1

	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT
1	20-- Dec. 31						1
2							2
3							3