Guinevere Company has the following data extracted from its Accounts Receivable records at June 30, 2011

Customer	Balance	Current	31 -75 days	Over 75 days
A	$ 8,000	$ 5,000	$ 2,000	$1,000
B	$ 2,000	-	$ 2,000	-
C	$ 4,000	$ 4,000	-	-
D	$ 9,000	$ 2,000	$ 1,000	$ 6,000
E	$ 3,000	$ 2,000	-	$ 1,000
F	$ 6,000	$ 6,000	-	-
G	$ 7,000	$ 3,000	$ 3,000	$ 1,000
Totals	$ 39,000	$ 22,000	$ 8,000	$ 9,000

Guinevere's sales terms are 1/15 n/30 and it records sales at the gross amount of the invoice.

Guinevere's year end is June 30

The unadjusted balance in the Allowance for Doubtful Accounts at June 30 is $8,000 dr.

Guinevere makes average sales of $2,000,000 per year and averages write offs of uncollectible balances of $100,000 per year.

Sales for the year ended June 30, 2010 are $1,400,000 credit sales and $400,000 cash sales

Guinevere has a very conservative receivables management strategy.

No adjusting entries have been recorded at June 30

If Guinevere used the Allowance Method (aging) to estimate bad debts and by a detailed review of the above aged trial balance decided that an allowance of $30,000 was appropriate, then the adjusting entry on June 30 would involve a credit to the "Allowance for Uncollectible Accounts" of ?

Answer rating: 100% (QA)

To determine the adjusting entry for the Allowance for Uncollectible Accounts on June 30 using the A... View the full answer