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Chapter 15 - Accounts Receivable and Uncollectible Accounts
58. On December 31, 2014, prior to adjustments, Accounts Receivable has a debit balance of
$356,000 and the Allowance for Doubtful Accounts has a debit balance of $1,200. The firm
estimates its losses from uncollectible accounts to be 4% of accounts receivable at the end of
the year. The amount of the adjusting entry needed to record the estimated losses from
uncollectible accounts is
59. On December 31, 2013, prior to adjustments, Accounts Receivable has a debit balance of
$370,000 and the Allowance for Doubtful Accounts has a credit balance of $400. The firm
estimates its losses from uncollectible accounts to be 5% of accounts receivable at the end of
the year. The amount of the adjusting entry needed to record the estimated losses from
uncollectible accounts is
Chapter 15 - Accounts Receivable and Uncollectible Accounts
Short Answer Questions
66. At the end of the current year, the trial balance of Kerry Hardware included the accounts
and balances shown below. Credit sales were $7,000,000. Returns and allowances on these
sales were $55,000. Assume that the firm bases its estimate of the loss from uncollectible
accounts on 0.4 percent of net credit sales.
1. What is the estimated loss from uncollectible accounts for the current year?
2. What is the amount of the adjusting entry for the estimated loss from uncollectible
accounts?
67. At the end of the current year, the trial balance of Diane's Dress Shop included the
accounts and balances shown below. Credit sales were $9,200,000. Returns and allowances
on these sales were $55,000. Assume that the firm bases its estimate of the loss from
uncollectible accounts on 0.4 percent of net credit sales.
1. What is the estimated loss from uncollectible accounts for the current year?
2. What is the amount of the adjusting entry for the estimated loss from uncollectible
accounts?
