At the end of the current year, the trial balance of Bianca's Exports included the accounts and balances shown below. Credit sales were $9,200,000. Returns and allowances on these sales were
$55,000. Assume that the firm bases its estimate of the loss from uncollectible accounts on 4 percent of accounts receivable.
Accounts Receivable $ 1,960,000 Dr.
Allowance for Doubtful Accounts 8,300 Cr.
Sales 14,000,000 Cr.
Sales Returns and Allowances 110,000 Dr.
1. What is the amount of the adjusting entry for the estimated loss from uncollectible accounts?
2. What is the balance in the Allowance for Doubtful Accounts account after the adjusting entry for the estimated loss from uncollectible accounts is posted?

Question

At the end of the current year, the trial balance of Bianca's Exports included the accounts and balances shown below. Credit sales were $9,200,000. Returns and allowances on these sales were
$55,000. Assume that the firm bases its estimate of the loss from uncollectible accounts on 4 percent of accounts receivable.
Accounts Receivable $ 1,960,000 Dr. 
Allowance for Doubtful Accounts 8,300 Cr.
Sales 14,000,000 Cr.
Sales Returns and Allowances 110,000 Dr.
1. What is the amount of the adjusting entry for the estimated loss from uncollectible accounts?
2. What is the balance in the Allowance for Doubtful Accounts account after the adjusting entry for the estimated loss from uncollectible accounts is posted?

Quizplus · Accepted Answer

The Answer of At the end of the current year, the trial balance of Bianca's Exports included the accounts and balances shown below. Credit sales were $9,200,000. Returns and allowances on these sales were
$55,000. Assume that the firm bases its estimate of the loss from uncollectible accounts on 4 percent of accounts receivable.
Accounts Receivable $ 1,960,000 Dr. 
Allowance for Doubtful Accounts 8,300 Cr.
Sales 14,000,000 Cr.
Sales Returns and Allowances 110,000 Dr.
1. What is the amount of the adjusting entry for the estimated loss from uncollectible accounts?
2. What is the balance in the Allowance for Doubtful Accounts account after the adjusting entry for the estimated loss from uncollectible accounts is posted?

At the End of the Current Year, the Trial Balance