Wilson Leather Products sells leather clothing at both wholesale and retail. The company has found that there is a higher rate of

uncollectible accounts from retail credit sales than from wholesale credit sales. Wilson computes its estimated loss from uncollectible

accounts at the end of each year. The amount is based on the rates of loss that the firm has developed from experience for each

division. A separate computation is made for each of the two types of sales. The firm uses the percentage of net credit sales method.

As of December $31,20$X$1,$ Accounts Receivable has a balance of $$402,000,$ and Allowance for Doubtful Accounts has a debit

balance of $$426.$ The following table provides a breakdown of the net credit sales for the year $201$ and the estimated rates of

Required:

Compute the estimated amount of uncollectible accounts expense for each of the two categories of net credit sales for the year.

Prepare an adjusting entry in general journal form to provide for the estimated uncollectible accounts on December $31,20$X$1.$ Use

Uncollectible Accounts Expense.

Show how Accounts Receivable and Allowance for Doubtful Accounts should appear on the balance sheet of Wilson Leather

Products as of December $31,20$X$1.$

On January $20,20$X$2,$ the account receivable of Columbus Clothiers, amounting to $$930,$ is determined to be uncollectible and is

to be written off. Record this transaction in the general journal.

On November $26,202,$ the attorneys for Wilson turned over a check for $$930$ that they obtained from Columbus Clothiers in

settlement of its account, which had been written off on January $20.$ The money has already been recorded in the cash receipts

journal. Give the general journal entry to reverse the original write$-$off.

Analyze:

Compute the net accounts receivable amount that should be reported in the financial statements for the year ended December $31,$

$201.$

Complete this question by entering your answers in the tabs below.

Prepare an adjusting entry in general journal form to provide for the estimated uncollectible accounts on December $31,201.$ Use

Uncollectible Accounts Expense.

Journal entry worksheet

Record the journal entry to record the provision for estimated uncollectible

accounts. Use Uncollectibe Accounts Expense.

Note: Enter debits before credits.