Glencoe Accounting

Chapter 24: Uncollectible Accounts Receivable

Homework Practice

Calculations for Uncollectible Accounts

At the end of the current year, the accounts receivable account has a debit balance of $820,000, and net sales for the current year total $6,300,000.

Instructions

Determine the amount of the adjusting entry to provide for uncollectible accounts under each of the following assumptions:

1. The allowance for uncollectible accounts account before adjustment has a credit balance of $1,500. Uncollectible accounts expense is estimated at ½% of net sales.
2. The allowance for uncollectible accounts account before adjustment has a credit balance of $2,800. An aging schedule for accounts receivable indicates estimated uncollectible accounts of $14,400.
3. The allowance for uncollectible accounts account before adjustment has a credit balance of $3,100. Uncollectible accounts expense is estimated at ¼% of net sales.
4. The allowance for uncollectible accounts account before adjustment has a credit balance of $3,200. An aging schedule for accounts receivable indicates estimated uncollectible accounts of $25,500.