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    Prepare the adjusting entry for the allowance for uncollectible accounts.

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    At the end of Year 2, the unadjusted trial balance of Alaska Company includes $1,500,000 of outstanding accounts receivable and an Allowance for Uncollectible Accounts of $14,600. Total sales for the year are $22,200,000 and 85% of the sales were on account. The company estimates that 1.8% of credit sales are uncollectible and no entries have been made during the year to reflect these uncollectibles. Prepare the adjusting entry for the allowance for uncollectible accounts.

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    https://brainmass.com/business/allowance-method/prepare-the-adjusting-entry-for-the-allowance-for-uncollectible-accounts-227359

    Solution Preview

    Total sales $22,200,000
    Credit sales ...

    $2.19

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