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Uncollectibe receivables

Please explain the attached problem.

QS 9-3:

Warner Company's year-end unadjusted trial balance shows accounts receivable of $99,000, allowance for doubtful accounts of $600 (credit), and sales of $28,000. Uncollectibles are estimated to be 1.5% of accounts receivables.

1. Prepare the December 31 year-end entry for uncollectibles.
2. What amount would have been used in the year-end adjusting entry if the allowance
account had a year-end unadjusted debit balance of $300?

QS 9-4:

Assume the same facts as in QS 9-3, except that Warner estimates uncollectibles as 0.5% of sales. Prepare the December 31 year-end adjusting entry for uncollectibles.

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QS 9-3:

Warner Company's year-end unadjusted trial balance shows accounts receivable of $99,000, allowance for doubtful accounts of $600 (credit), and sales of $28,000. Uncollectibles are estimated to be 1.5% of accounts receivables.

1. Prepare the December 31 year-end entry for uncollectibles.

The uncollectible is 1.5% of receivables = 99,000X1.5%=1,485. After the adjustment, this should be the ...

Solution Summary

The solution explains the entries relating to uncollectible receivables.

$2.19