Cottage Sales Company made most of its sales on credit during its first year of operation, 2010. At the end of the year, accounts receivable amounted to $100,000. On December 31, 2010, management reviewed the collectible status of the accounts receivable. Approximately $6,000 of the $100,000 of accounts receivable were estimated to be uncollectible. As per the accounts receivable aging method the adjusting entry that would be made on December 31 of that year is:

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The Answer of Cottage Sales Company made most of its sales on credit during its first year of operation, 2010. At the end of the year, accounts receivable amounted to $100,000. On December 31, 2010, management reviewed the collectible status of the accounts receivable. Approximately $6,000 of the $100,000 of accounts receivable were estimated to be uncollectible. As per the accounts receivable aging method the adjusting entry that would be made on December 31 of that year is:

Cottage Sales Company Made Most of Its Sales on Credit