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11 December, 04:18

Brief Exercise 5-7 Record the adjustment for uncollectible accounts (LO5-3) At the end of the year, Dahir Incorporated's balance of Allowance for Uncollectible Accounts is $3,000 (debit) before adjustment. The company estimates future uncollectible accounts to be $15,000. What is the adjustment Dahir would record for Allowance for Uncollectible Accounts? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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  1. 11 December, 04:44
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    At the end of period the allowance for uncollectible debts will be: 15000-3000 = $ 12000 because 3000 account receivable is written off.

    Explanation:

    (Opening) Allowance for uncollectible accounts = 3000 (Dr)

    During the year company estimates = $ 15000

    Entry : Dr Bad debts expense 15000

    Cr Allowance for bad debts 15000

    (To record uncollectible accounts)
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