Pincus Associates uses the allowance method to account for bad debts. 2024 was the first year of
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Pincus Associates uses the allowance method to account for bad debts. 2024 was the first year of operations for Pincus, so it had a $0 opening balance in its allowance for uncollectible accounts. During 2024, Pincus provided a total of $250,000 of services on account. In 2024, the company wrote off uncollectible accounts of $10,000. By the end of 2024, cash collections on accounts receivable totaled $210,000. Pincus estimates that 20% of the accounts receivable balance at 12/31/2024 will prove uncollectible.
Required:
1. What journal entry did Pincus record to write off uncollectible accounts during 2024?
2. What journal entry should Pincus record to recognize bad debt expense for 2024?
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Requirement 1 Allowance for uncollectible accounts to r...View the full answer
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