Adjusting entry related to uncollecting accounts

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Reference no: EM13147905

On December 31, 2009, Colonial Corporation had the following account balances related to credit sales and receivables prior to recording adjusted entries:

Accounts receivable $25,000
Allowance for doubtful accounts 200 (credit)
Sales revenue ( allcredit sales) 400,000

Required

Present the necessary year end adjusting entry related to uncollecting accounts for each of the following independant assumptions:

A. An aging of accounts receivable is completed. It is estimated that $2,150 of the receivables outstanding at year end will be uncollected.

B. It is estimated that 1% of credit sales for the year will prove to be uncollectible.

C. Assume the same information presented in (1. above except that prior adjustment, the Allowance for Doubtful Accounts had a debt balance of $200 rather than a credit balance of $200

Reference no: EM13147905

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