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23 May, 23:58

Southwest Pediatrics has the following balances on December 31, 2021, before any adjustment: Accounts Receivable = $119,000; Allowance for Uncollectible Accounts = $1,900 (debit). On December 31, 2021, Southwest estimates uncollectible accounts to be 15% of accounts receivable. Required: 1. Record the adjusting entry for uncollectible accounts on December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

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  1. 24 May, 00:08
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    The adjusting entry is shown below:

    Bad debt expense A/c Dr $19,750

    To Allowance for Uncollectible Accounts $19,750

    (Being the bad debt expense is adjusted)

    The computation of the Allowance for Uncollectible Accounts is shown below:

    = Accounts receivable * estimated percentage + debit balance of allowance for uncollectible accounts

    = $119,000 * 15% + $1,900

    = $17,850 + $1,900

    = $19,750
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