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26 June, 22:14

Performance Bike Co. has determined that the proper balance for the Allowance for Doubtful Accounts at December 31 is $32,094. Assume that the allowance for doubtful accounts for Performance Bike Co. had a debit balance of $5,775 as of December 31. Journalize the adjusting entry for uncollectible accounts as of December 31. Dec. 31 Bad Debt Expense

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  1. 26 June, 22:30
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    The journal entry is as follows:

    On December 31,

    Bad debt expense A/c Dr. $37,869

    To Allowance for doubtful accounts $37,869

    (To record the uncollectible accounts as of December 31)

    Working notes:

    Allowance for doubtful accounts:

    = Allowance for Doubtful Accounts at December 31 + Debit balance of allowance for doubtful accounts as of December 31

    = $32,094 + $5,775

    = $37,869
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