The Accounts Receivable account of Samson Company shows a debit balance of $52,000 at the end of

Question:

The Accounts Receivable account of Samson Company shows a debit balance of $52,000 at the end of the year. An aging analysis of the individual accounts indicates estimated uncollectible accounts to be $3,350.

Prepare the entry to record the uncollectible accounts expense, under each of the following independent assumption:

(a) Allowance for Uncollectible Accounts has a credit balance of $400 before adjustment, and

(b) Allowance for Uncollectible Accounts has a debit balance of $400 before adjustment. What is the balance of Allowance for Uncollectible Accounts after each of these adjustments?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...