Voight company's account balances at december 31 for accounts receivable and allowance for doubtful accounts were $1,400,000 and $70,000 (cr.), respectively. an aging of accounts receivable indicated that $128,000 are expected to become uncollectible. the amount of the adjusting entry for bad debts at december 31 is

Question

Business

Carl Soto

23 July, 16:35

Voight company's account balances at december 31 for accounts receivable and allowance for doubtful accounts were $1,400,000 and $70,000 (cr.), respectively. an aging of accounts receivable indicated that $128,000 are expected to become uncollectible. the amount of the adjusting entry for bad debts at december 31 is

+5

Answers (1)

Know the Answer?

Amelia Nielsen · Answer 1

The adjusting entry for bad debts at December 31 would be equal to $58,000. The reason for this is because Voight company already had an allowance for doubtful accounts of $70,000, but the actual amount that was uncollectible was $128,000, which is $58,000 more than the anticipated amount. This is why the adjusting entry would be equal to $58,000.