Debit Company uses the aging of accounts receivable method to estimate uncollectible accounts. The company started the year with accounts receivable of $85,000 and an allowance for uncollectible accounts of $10,000. During the year, the company had credit sales of $300,000 and cash collections on account of $325,000. It also wrote off uncollectible accounts receivable of $7,000. At the end of the year, an aging of accounts receivable indicated the company will not collect $8,000 of its accounts receivable.
1. Journalize the credit sales, cash collections, write-off, and uncollectible accounts expense for the year.
2. Create a T account for the allowance for uncollectible accounts, post the necessary entries, and compute an ending account balance. The T account should support the journal entry for uncollectible accounts expense.

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The Answer of Debit Company uses the aging of accounts receivable method to estimate uncollectible accounts. The company started the year with accounts receivable of $85,000 and an allowance for uncollectible accounts of $10,000. During the year, the company had credit sales of $300,000 and cash collections on account of $325,000. It also wrote off uncollectible accounts receivable of $7,000. At the end of the year, an aging of accounts receivable indicated the company will not collect $8,000 of its accounts receivable.
1. Journalize the credit sales, cash collections, write-off, and uncollectible accounts expense for the year.
2. Create a T account for the allowance for uncollectible accounts, post the necessary entries, and compute an ending account balance. The T account should support the journal entry for uncollectible accounts expense.

Debit Company Uses the Aging of Accounts Receivable Method to Estimate