Question

weaver companys year - end unadjusted trial balance shows accounts receivable of $108,000, allowance for doubtful accounts of $690 credit, and sales of $370,000. uncollectibles are estimated to be 1.50% of accounts receivable. complete this question by entering your answers in the tabs below. required 1 required 2 prepare the december 31 year - end adjusting entry for uncollectibles. view transaction list journal entry worksheet 1 record the estimate of uncollectibles. note: enter debits before credits. date general journal debit credit december 31

Explanation:

Step1: Calculate the required ending balance of allowance for doubtful accounts

The accounts - receivable is $108,000 and uncollectibles are estimated to be 1.50% of accounts - receivable. So the required ending balance of allowance for doubtful accounts is $108,000\times1.50\%= 108000\times0.015 = 1620$.

Step2: Calculate the bad - debt expense

The current credit balance in the allowance for doubtful accounts is $690. The bad - debt expense is the amount needed to adjust the allowance for doubtful accounts to its required ending balance. So the bad - debt expense is $1620 - 690=930$.

Step3: Record the adjusting entry

The adjusting entry on December 31 will debit Bad - Debt Expense (an expense account) and credit Allowance for Doubtful Accounts (a contra - asset account).

Date	General Journal	Debit	Credit
	Allowance for Doubtful Accounts		930

Answer:

Date	General Journal	Debit	Credit
	Allowance for Doubtful Accounts		930