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ABC company estimate sales method accounting

11. ABC company uses the estimate of sales method of accounting for uncollectible accounts. ABC estimates that 3% of all credit sales will be uncollectible. On January 1, 2005, the Allowance for Doubtful Accounts had a credit balance of $2,400. During 2005, ABC wrote-off accounts receivable totaling $1,800 and made credit sales of $100,000. After the adjusting entry, the December 31, 2005, balance in the Uncollectible Accounts Expense would be ________.
$1,200
$3,000
$3,600
$7,200

12. A $6,000, 30-day, 12% note recorded on November 21 is not paid by the maker at maturity. The journal entry to recognize this event is ________.
debit Cash, $6,060; credit Notes Receivable, $6,060
debit Accounts Receivable, $6,060; credit Notes Receivable, $6,000; Credit Interest Receivable, $60
debit Notes Receivable, $6,060; credit Accounts Receivable, $6,060
debit Accounts Receivable, $6,060; credit Notes Receivable, $6,000; Credit Interest Revenue,

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11. ABC company uses the estimate of sales method of accounting for uncollectible accounts. ABC estimates that 3% of all credit sales will be uncollectible. On January 1, 2005, the Allowance for Doubtful Accounts had a credit balance of $2,400. During 2005, ABC wrote-off accounts receivable totaling $1,800 and made credit sales of ...

Solution Summary

This solution is comprised of a detailed explanation to answer what is the balance in the Uncollectible Accounts Expense and write the journal entry to record the transaction.

$2.19