Ask Question
26 May, 04:45

At the end of the current year, using the aging of receivable method, management estimated that $22,750 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a credit balance of $445. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense

+5
Answers (1)
  1. 26 May, 05:29
    0
    Journal entry

    Explanation:

    The journal entry is as follows

    Bad debt expense $22,305 ($22,750 - $445)

    To Allowance for doubtful debts $22,305

    (Being the bad debt expense is recorded)

    While recording this transaction, we debited the bad debt expense as it increases the expenses account while at the same time it reduces the asset side of the balance sheet so the allowance would be credited
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “At the end of the current year, using the aging of receivable method, management estimated that $22,750 of the accounts receivable balance ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers