During its first year of operations, Buffalo Industries had credit sales of $3,018,700, of which $409,600 remained uncollected at year-end. The credit manager estimates that $19,460 of these receivables will become uncollectible.

Prepare the journal entry to record the estimated uncollectibles.

Question

Jairo Zuniga

Business

26 September, 21:45

During its first year of operations, Buffalo Industries had credit sales of $3,018,700, of which $409,600 remained uncollected at year-end. The credit manager estimates that $19,460 of these receivables will become uncollectible.

Prepare the journal entry to record the estimated uncollectibles.

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Adolfo Montes · Answer 1

Journal entry

Explanation:

The Journal entry is shown below:-

Bad dept expenses Dr, $19,460

To Allowance for doubtful accounts $19,460

(Being estimated uncollectible is recorded)

Therefore for recording the estimated uncollectible, we debited the bad dept expenses and credited allowance for doubtful accounts

During its first year of operations, Buffalo Industries had credit sales of $3,018,700, of which $409,600 remained uncollected at year-end. The credit manager estimates that $19,460 of these receivables will become uncollectible.Prepare the journal entry to record the estimated uncollectibles.

During its first year of operations, Buffalo Industries had credit sales of $3,018,700, of which $409,600 remained uncollected at year-end. The credit manager estimates that $19,460 of these receivables will become uncollectible.

Prepare the journal entry to record the estimated uncollectibles.