# Accounting

posted by .

On Dec 31, 2007, before adjusting entries, the blances of selected accounts for the company were as follows:

Accounts receivable 840,000
Allowance for uncollectable accounts (debit balance) 2,000 dr.

The company has determined that historically about 2.0 percent of accounts receivable are never collected and uses this bases to determine it's bad debts provivion. Give the journal entry to record the companies estimated loss from uncollectible accounts on Dec 31.

• Accounting -

The allowance for uncollectible debts should be adjusted to 2% of 840,000, or 16,800. Since there was already a 2000 dollar debit balance in this category, 14,800 should be added to the estimated loss from debts.

I am not an accounting expdertr, so I do not guarantee that answer.

## Similar Questions

1. ### accounting

I was given gross accounts receivable \$15,200,000 and \$17,600,000 respectively; allowance for uncollectible accounts at the begining and end of the year \$1,400,000 and \$1,550,000; expense for estimated uncollectible accouts \$750,00 …

How do i calculate this problem. In 2007 the Pearl Boutique had net credit sales of \$750,000. On January 1, 2007, Allowance for Doubtful Accounts had a credit balance of \$16,000. During 2007, \$30,000 of uncollectible accounts receivable …
3. ### accounting

Exercise 9-13: Accounts receivable turnover L.O. A1 The following information is from the annual financial statements of Lucilla Company. 2009 2008 2007 Net Sales \$ 262,000 \$ 193,000 \$ 245,000 Accounts Receivable, net (year-end) 42,700 …
4. ### accounting

P9-4A (a-d) Wall Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year end. Number of Days Outstanding Total 0-30 31-60 61-90 91-120 …
5. ### Financial Accounting

Use the following information to answer multiple-choice questions 5 and 6. At the end of the year, before any adjustments are made, the accounting records for Sutton Company show a balance of \$100,000 in accounts receivable. The allowance …
6. ### accounting

On January 1, 2012, Lexmark Company's Accounts receivable account had a debit balance of \$10,000. During January, 2012, the company billed customers for services in the amount of \$300,000. Also during January, the company collected …
7. ### accounting

After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of \$673,400, and Allowance for Doubtful Accounts has a balance of \$11,900. Describe how the accounts receivable and the allowance …
8. ### accounting II

A company has \$314,000 in credit sales. The company uses the allowance method to account for uncollectible accounts. The allowance for doubtful accounts now has a \$1,890 debit balance. If the company estimates that \$8,160 of accounts …
9. ### Accounting

Flip Company's December 31, 2014 trial balance is as follows: Flip Corporation Trial Balance December 31, 2014 Account Debit Credit Cash \$43,500 Accounts Receivable 54,500 Allowance for Doubtful Accounts 500 Notes Receivable 30,000 …
10. ### acct ii

A company has \$314,000 in credit sales. The company uses the allowance method to account for uncollectible accounts. The allowance for doubtful accounts now has a \$1,890 debit balance. If the company estimates that \$8,160 of accounts …

More Similar Questions