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1 October, 05:12

At the end of the year, Dahir Incorporated's balance of Allowance for Uncollectible Accounts is $2,000 (debit) before adjustment. The company estimates future uncollectible accounts to be $10,000. What is the adjustment Dahir would record for Allowance for Uncollectible Accounts? (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

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  1. 1 October, 06:44
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    Bad Debt Expenses for the year:

    = Total estimated uncollectible + Debit balance in Allowance for Doubtful accounts

    = $10,000 + $2,000

    = $12,000

    Therefore,

    The adjusted journal entry is as follows:

    Bad Debt Expense A/c Dr. $12,000

    To Allowance for Doubtful Accounts A/c $12,000

    (Being the Journal entry passed to record the Allowance for doubtful accounts)
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