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    Adjusting entry to estimate uncollectible accounts.

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    Chaney Ltd. started business several years ago. For the year ended December 31, 2010, the
    following information (before adjustments) is available:
    Accounts Receivable 56,000
    Allowance for Doubtful Accounts 350
    Sales (all on account) 195,700
    Sales Discounts 1,800
    All accounts have normal balances
    Required:
    Prepare entries for each of the following selected transactions:
    1. Management estimated uncollectible customer accounts to be 1.5% of net credit sales.
    Prepare the December 31, 2010 adjusting entry to estimate uncollectible accounts.
    2. On March 15, 2011, a $1,750 account receivable for customer Donovan Watson was
    determined to be uncollectible and was written off.
    3. For 2011, management estimated uncollectible customer accounts to be 5% of outstanding
    account receivable. Prepare the December 31, 2011 adjusting entry to estimate uncollectible
    accounts assuming accounts receivable balance at this date is $75,000.

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    https://brainmass.com/business/accounting/adjusting-entry-estimate-uncollectible-accounts-447207

    Solution Summary

    Adjusting entry to estimate uncollectible accounts are examined. The uncollectible customers are examined.

    $2.19

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