At the end of the first year of operations, Mayberry Advertising had accounts receivable of $20,500. Management of the company estimates that 12% of the accounts will not be collected. What adjustment would Mayberry Advertising record for Allowance for Uncollectible Accounts? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal Entry WorksheetRecord the adjustment entry for Allowance for Uncollectible Accounts.

The entry for Allowance for Uncollectible accounts is entered in the journal under the debit account field

Adjusted entry for accounts receivable = $18040

Explanation:

Accounts receivable is recorded as = $20500

estimated percentage of accounts not collected (bad debits) = 12%

which is = 12% * 20500 = $2460

Allowance for Uncollectible Accounts = $2640. Under the field of general journal the bad debits is entered there

adjusted amount for accounts receivable to be entered in the journal will be = $20500 - $ 2640 = $18040

Accounts receivables are money owed a business by its customers or debtors and they can be legally claimed by the company from its debtors/customers. it is usually accrued from services rendered or goods sold to its customers

Answer: The adjustment for allowance for uncollectible accounts would be Debit: Bad debt expense $2,460, Credit Allowance for uncollectible accounts $2,460.

Explanation: The above amount for allowance for uncollectibe accounts was derived by calculating 12% management estimates of $20,500 that was deemed uncollectible. Therefore, 12% of $20,500 = $2,460. Consequently, the balance in the accounts receivable would be $20,500 - $2,460 = $18,040. This amount represents the carrying amount of the accounts receivable at the end of the first year of operations.