Journal entry worksheet Record the adjustment entry for Uncollectible Accounts. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 9,600 2018 Allowance for uncollectible accounts 9,600 Record entry Clear entry View general journal 2. Calculate the net realizable value of accounts receivable. Total accounts receivable Net realizable value
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
During 2018, its first year of operations, Pave Construction provides services on account of $156,000. By the end of 2018, cash collections on these accounts total $108,000. Pave estimates that 20% of the uncollected accounts will be
Required:
1. Record the adjustment for uncollectible accounts on December 31, 2018. (If no entry is required for a transaction/event, select "No
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