Question

For the fiscal year ended December 31, 2016, Alpha Company had credits sales that amounted to $300,000. Historically, 2.5% of credit sales are uncollectible. Alpha Company uses the percentage of sales method to determine its uncollectible accounts. The balance before any end of the year adjusting entry in the Allowance for Uncollectable Accounts is a credit value of $1,575. Use this information to prepare the adjusting General Journal entry (without explanation) for the fiscal year.

Answer 1

Answer:

uncollectible accounts expense 5925  

Allowance uncollectible accounts  5925

Explanation:

credit sales 300000  

Uncollectible 2,50%  

Uncollectible account 7500  

Uncollectible account credit 1575  

Adjustment 5925  

 

uncollectible accounts expense 5925  

Allowance uncollectible accounts  5925