what are the amounts for both of those entries

Special types of adjusting entries O Estimated items: expenses such as depreciation and bad debts whose amounts are a function of unknown future events or developments. Depreciation-When a fixed asset is acquired, its cost is recorded in an asset account. As the asset helps to generate revenue, the cost is converted to an expense. At this point we will review the simplest type of depreciation, straight line. Example: Truck cost $18,000, salvage value $2000, estimated useful life is 4 years, and acquired on Oct 1 of this year. 12/31 | Depreciation Expense Accumulated Depr Bad Debts- Follows matching principle; however, it is a tradeoff between relevance and reliability. Balance Sheet method- multiply percent times accounts receivable or do an aging of accounts receivable. This determines the amount you need in the allowance for doubtful accounts account. Allowance for Doubtful Accounts Begin Begin possible Write-On nadjusted possible Reestablish Unadjusted Bad Debt Ex End Balance Example: Suppose the accounts receivable have an ending balance of $20,000 and you Estimate 5 to be uncollectible. Assuming that the balance in the allowance account is a $200 credit balance, what is the adjusting entry recorded at the end of the period? DE DOBLO bula