Question

journal entry worksheet
1 2
record estimated bad debts assuming that allowance for doubtful accounts has a $4,100 credit balance.
note: enter debits before credits.
data general journal debit credit
december 31

Explanation:

Step1: Identify the accounts involved

The accounts involved are Bad - Debt Expense (to record the estimated uncollectible amount) and Allowance for Doubtful Accounts (to adjust the allowance balance).

Step2: Determine the journal entry

Since we are estimating bad debts and the Allowance for Doubtful Accounts already has a credit balance, we will debit Bad - Debt Expense and credit Allowance for Doubtful Accounts. The amount of the entry depends on the estimated bad - debt amount. Assuming the estimated bad - debt amount is $X$, the journal entry is:

Date	General Journal	Debit	Credit
	Allowance for Doubtful Accounts		$X$

However, since the problem does not give the estimated bad - debt amount other than the existing credit balance of the allowance account, if we assume the company wants to adjust the allowance to a certain target amount $Y$, the amount of the bad - debt expense ($X$) would be $Y - 4100$ (if $Y>4100$). For simplicity, if we just want to record an additional estimated amount of $Z$, the journal entry is:

Date	General Journal	Debit	Credit
	Allowance for Doubtful Accounts		$Z$

Answer:

Date	General Journal	Debit	Credit
	Allowance for Doubtful Accounts		[Estimated amount]