Ask Question
30 March, 16:42

At the end of the first year of operations, Gaur Manufacturing had gross accounts receivable of $348,000. Gaur's management estimates that 7% of the accounts will prove uncollectible. What journal entry should Gaur record to establish an allowance for uncollectible accounts?

+4
Answers (1)
  1. 30 March, 16:58
    0
    The journal entry is shown below:

    Bad debt expense A/c Dr $24,360

    To Allowance for doubtful debts $24,360

    (Being bad debt expense is recorded)

    The computation of the bad debt expense is shown below:

    = Gross accounts receivable * estimated percentage given

    = $348,000 * 7%

    = $24,360

    We debited the bad debt expense and credited the allowance for doubtful debts account so that the correct posting can be done
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “At the end of the first year of operations, Gaur Manufacturing had gross accounts receivable of $348,000. Gaur's management estimates that ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers