Chapter 15 – Accounts Receivable and Uncollectible Accounts
77. At the end of the current year, the trial balance of Johannes’ Sporting Goods Shop
included the accounts and balances shown below. Credit sales were $180,000. Returns and
allowances on these sales were $2,000. Assume that the firm bases its estimate of the loss
from uncollectible accounts on 3 percent of accounts receivable.
1. What is the balance in the Allowance for Doubtful Accounts account after the adjusting
entry for the estimated loss from uncollectible accounts is posted?
2. What is the amount of the adjusting entry for the estimated loss from uncollectible
accounts?
15–39
82. The Travel-Right Company uses the allowance method to provide for losses from
uncollectible accounts. Record the following selected transactions on page 5 of a general
journal, assuming the company also uses a cash receipts journal. Omit descriptions.
Chapter 15 – Accounts Receivable and Uncollectible Accounts
Matching Questions
85. Match the accounting terms with the description by entering the proper number.
1. Any account whose balance is revalued or reappraised in
light of reasonable expectations
Valuation
account
1
2. A method of recording uncollectible accounts as they
occur
Allowance
method
4
3. Classifying accounts receivable balances according to
how long they have been outstanding
Direct charge-
off method
2
4. A method of recording uncollectible accounts that
estimates losses from uncollectible accounts and charges
them to expense in the period when the sales are recorded
Aging the
accounts
receivable
3