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Record the end-of-period adjusting entry

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Reference no: EM13511982

At the end of the current year, the accounts receivable account of Parker's Nursery Supplies has a debit balance of $350,000. Credit sales are $2,300,000.

Record the end-of-period adjusting entry on December 31, in general journal form, for the estimated uncollectible accounts. Assume the following independent conditions existed prior to the adjustment:

1. Allowance for Bad Debts has a credit balance of $1,920.

(a) The percentage of sales method is used and bad debt expense is estimated to be 1% of credit sales.
(b) The percentage of receivables method is used and an analysis of the accounts produces an estimate of $24,560 in uncollectible accounts.

2. Allowance for Bad Debts has a debit balance of $1,280.

(a) The percentage of sales method is used and bad debt expense is estimated to be ?3 of 1% of credit sales.
(b) The percentage of receivables method is used and an analysis of the accounts produces an estimate of $22,440 in uncollectible accounts.

Reference no: EM13511982

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