At the end of 2019, the trial balance of Bryant Paint Store included the accounts and balances shown below. Credit sales were $145,000. Returns and allowances on these sales were $2,000. Assume that the firm bases its estimate of the loss from uncollectible accounts on 0.3 percent of net credit sales.
Accounts Receivable $ 18,000 Dr.
Allowance for Doubtful Accounts 500 Dr.
1. What is the amount of the adjusting entry for the estimated loss from uncollectible accounts for 2019?
2. What is the amount to be reported as Uncollectible Accounts Expense on the income statement for the year ended December 31, 2019?

Question

At the end of 2019, the trial balance of Bryant Paint Store included the accounts and balances shown below. Credit sales were $145,000. Returns and allowances on these sales were $2,000. Assume that the firm bases its estimate of the loss from uncollectible accounts on 0.3 percent of net credit sales. 
Accounts Receivable $ 18,000 Dr. 
Allowance for Doubtful Accounts 500 Dr.
1. What is the amount of the adjusting entry for the estimated loss from uncollectible accounts for 2019?
2. What is the amount to be reported as Uncollectible Accounts Expense on the income statement for the year ended December 31, 2019?

Quizplus · Accepted Answer

The Answer of At the end of 2019, the trial balance of Bryant Paint Store included the accounts and balances shown below. Credit sales were $145,000. Returns and allowances on these sales were $2,000. Assume that the firm bases its estimate of the loss from uncollectible accounts on 0.3 percent of net credit sales. 
Accounts Receivable $ 18,000 Dr. 
Allowance for Doubtful Accounts 500 Dr.
1. What is the amount of the adjusting entry for the estimated loss from uncollectible accounts for 2019?
2. What is the amount to be reported as Uncollectible Accounts Expense on the income statement for the year ended December 31, 2019?

At the End of 2019, the Trial Balance of Bryant