Financial and Managerial Accounting (Looseleaf) (Custom Package)
Financial and Managerial Accounting (Looseleaf) (Custom Package)
6th Edition
ISBN: 9781259754883
Author: Wild
Publisher: MCG
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Chapter 7, Problem 6QS

Percent of accounts receivable method P3

Warner Company’s year-end unadjusted trial balance shows accounts receivable of $99,000, allowance for doubtful accounts of $600 (credit), and sales of $280,000. Uncollectable are estimated to be 1.5% of accounts receivable.

  1. Prepare the December 31 year-end adjusting entry for uncollectible.
  2. What amount would have been used in the year-end adjusting entry if the allowance account had a year-end unadjusted debit balance of $300?

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Financial and Managerial Accounting (Looseleaf) (Custom Package)

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Accounts Receivable and Accounts Payable; Author: The Finance Storyteller;https://www.youtube.com/watch?v=x_aUWbQa878;License: Standard Youtube License