At the end of the current year, the accounts receivable account

At the end of the current year, the accounts receivable account of Glenn’s Nursery Supplies has a debit balance of $390,000. Credit sales are $2,800,000. Record the end-of-period adjusting entry on December 31, in general journal form, for the estimated uncollectible accounts. Assume the following independent conditions existed prior to the adjustment:

1. Allowance for Bad Debts has a credit balance of $1,760.

(a) The percentage of sales method is used and bad debt expense is estimated to be 1% of credit sales.

(b) The percentage of receivables method is used and an analysis of the accounts produces an estimate of $30,330 in uncollectible accounts.

2. Allowance for Bad Debts has a debit balance of $1,900.

(a) The percentage of sales method is used and bad debt expense is estimated to be ¾ of 1% of credit sales.

(b) The percentage of receivables method is used and an analysis of the accounts produces an estimate of $29,890 in uncollectible accounts.


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...

Members

  • Access to 2 Million+ Textbook solutions
  • Ask any question from 24/7 available
    Tutors
$9.99
VIEW SOLUTION

OR

Non-Members

Get help from Accounting Tutors
Ask questions directly from Qualified Online Accounting Tutors .
Best for online homework assistance.