A company has $235,000 in credit sales.The company uses the allowance method to account for uncollectible accounts.The Allowance for Doubtful Accounts now has a $7,250 credit balance.If the company estimates 7% of credit sales will be uncollectible,what will be the amount of the journal entry to record estimated uncollectible accounts?

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The amount of the journal entry to record estimated uncollectible accounts is $16,450. This is calculated as follows:Estimated uncollectible accounts = Credit sales * Estimated uncollectible percentageEstimated uncollectible accounts = $235,000 * 7%Estimated uncollectible accounts = $16,450The journal entry to record estimated uncollectible accounts is as follows:Debit: Bad Debt Expense $16,450Credit: Allowance for Doubtful Accounts $16,450

A Company Has $235,000 in Credit Sales