BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756

Solutions

Chapter
Section
BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756
Textbook Problem

Toni’s Tech Shop has total credit sales for the year of $170,000 and estimates that 3% of its credit sales will be uncollectible. Allowance for Doubtful Accounts has a credit balance of $275.

Prepare the adjusting entry at year-end for the estimated bad debt expense.

  1. (a) Based on an aging of its accounts receivable, Kyle’s Cyclery estimates that $3,200 of its year-end accounts receivable will be uncollectible. Allowance for Doubtful Accounts has a debit balance of $280 at year-end.

Prepare the adjusting entry at year-end for the estimated uncollectible accounts.

(a)

To determine

Record the adjusting entry at year-end for the estimated bad debt expense.

Explanation

Bad debt expense:

Bad debt expense is an expense account. The amounts of loss incurred from extending credit to the customers are recorded as bad debt expense. In other words, the estimated uncollectible accounts receivable are known as bad debt expense.

Record the adjusting entry at year-end for the estimated bad debt expense:

DateParticularsDebitCredit
Year endBad debt expense$5,100 
    Allowance for doubtful accounts  $5,100
 (To record the adjusting entry of bad debts expense)  

Table (1)

Working note 1:

Calculate the bad debt expense...

(b)

To determine

Record the adjusting entry at year-end for the estimated uncollectible accounts.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

What is a context diagram?

Accounting Information Systems

Why are interest charges not deducted when a project's cash flows for use in a capital budgeting analysis are c...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Define the term sales mix, and give an example to support your definition.

Cornerstones of Cost Management (Cornerstones Series)