On December 31,2011,Colonial Corporation had the following account balances related to credit sales and receivables prior to recording adjusting entries:
$$\begin{array} { l r r }
\text { Accounts receivable } & \$ 25,000 & \
\text { Allowance for doubtful accounts } & 200 & \text { (credit) } \
\text { Sales revenue (all credit sales) } & 400,000 &
\end{array}$$ Requirements:
Present the necessary year-end adjusting entry related to uncollectible accounts for each of the following independent assumptions:
A.An aging of accounts receivable is completed.It is estimated that $2,150 of the receivables outstanding at year-end will be uncollectible.
B.It is estimated that 1% of credit sales for the year will prove to be uncollectible.
C.Assume the same information presented in part A.Except that prior to adjustment,the allowance for doubtful accounts had a debit balance of $200 rather than a credit balance of $200.

Question

On December 31,2011,Colonial Corporation had the following account balances related to credit sales and receivables prior to recording adjusting entries:
 $$\begin{array} { l r r } 
\text { Accounts receivable } & \$ 25,000 & \
\text { Allowance for doubtful accounts } & 200 & \text { (credit) } \
\text { Sales revenue (all credit sales) } & 400,000 &
\end{array}$$ Requirements:
Present the necessary year-end adjusting entry related to uncollectible accounts for each of the following independent assumptions:
A.An aging of accounts receivable is completed.It is estimated that $2,150 of the receivables outstanding at year-end will be uncollectible.
B.It is estimated that 1% of credit sales for the year will prove to be uncollectible.
C.Assume the same information presented in part A.Except that prior to adjustment,the allowance for doubtful accounts had a debit balance of $200 rather than a credit balance of $200.

On December 31,2011,Colonial Corporation Had the Following Account Balances Related