Answered

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Southwest Pediatrics has the following balances on December 31, 2021, before any adjustment: Accounts Receivable = $111,000; Allowance for Uncollectible Accounts = $2,100 (debit). On December 31, 2021, Southwest estimates uncollectible accounts to be 20% of accounts receivable.

Sagot :

Parrain

The question is not specified but most probably requires the calculation and recording of the Bad debt expense for the month.

The relevant journal entry is:

Date            Account Title                                               Debit                Credit

Dec. 31        Bad debt expense                                   $24,300

                   Allowance for Uncollectible Accounts                             $24,300

Uncollectible account = 20% of Accounts receivable

= 20% x 111,000

= $22,200

Bad debt expense = Uncollectible accounts +  Allowance for Uncollectible Accounts

= 22,200 + 2,100

= $24,300

As an expense, bad debts will be debited to an expense account to show it is increasing. The Allowance account will be credited as a liability account.

Find out more at https://brainly.com/question/15347431.

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