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