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26 February, 22:24

Entry for Uncollectible Accounts Performance Bike Co. has determined that the proper balance for the Allowance for Doubtful Accounts at December 31 is $39,044. Assume that the allowance for doubtful accounts for Performance Bike Co. had a debit balance of $7,030 as of December 31. Journalize the adjusting entry for uncollectible accounts as of December 31.

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  1. 26 February, 22:53
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    Answer: This transaction can be Journalized as follows : -

    December 31. Bad debt expense A/C Dr. $46,074

    To allowance for doubtful accounts $46,074

    (adjusting allowance account to total uncollectibles)

    Explanation:

    bad debt expense = doubtful accounts debit balance + desired balance for doubtful accounts

    = $39044 + $7030

    =$ 46,074
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