A company has $317,000 in credit sales.The company uses the allowance method to account for uncollectible accounts.The Allowance for Doubtful Accounts now has an $8,150 debit balance.If the company estimates 6% of credit sales will be uncollectible,what will be the amount of the journal entry to record estimated uncollectible accounts?

Question

Quizplus · Accepted Answer

The estimated uncollectible accounts are 6% of $317,000, which is $19,020. The current debit balance of $8,150 in the Allowance for Doubtful Accounts does not affect the calculation of the estimated uncollectible accounts for the journal entry.

A Company Has $317,000 in Credit Sales