Question

During its first year of operations, Buffalo Industries had credit sales of $3,018,700, of which $409,600 remained uncollected at year-end. The credit manager estimates that $19,460 of these receivables will become uncollectible.

Prepare the journal entry to record the estimated uncollectibles.

Answer 1

Answer:

Journal entry

Explanation:

The Journal entry is shown below:-

Bad dept expenses Dr,                                $19,460

         To Allowance for doubtful accounts             $19,460

(Being estimated uncollectible is recorded)

Therefore for recording the estimated uncollectible, we debited the bad dept expenses and credited allowance for doubtful accounts