On December 31, 2019, before adjusting entries, the balances of selected accounts of the Battlefield Equipment Company

Question:

On December 31, 2019, before adjusting entries, the balances of selected accounts of the Battlefield Equipment Company were as follows:

Accounts Receivable..................................................................$465,000

Allowance for Uncollectible Accounts (debit balance).................1,500 dr.

The company has determined that historically about 3.4 percent of accounts receivable are never collected and uses this basis to determine its bad debts provision. Give the journal entry to record the company’s estimated loss from uncollectible accounts on December 31.

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...