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The company estimates future uncollectible accounts. The company determines $4,000 of accounts receivable on January 31 are past due, and 20% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger. )

Supplies at the end of January total $800.

Accrued interest revenue on notes receivable for January.

Interest is expected to be received each December 31.

Unpaid salaries at the end of January are $34,600

Sagot :

Parrain

Based on the various account balances, the relevant journal entries will be:

Date              Account Title                                              Debit        Credit

Jan 31            Bad debt expense                                    $830

                    Allowance for Uncollectible Accounts                      $830

Date              Account Title                                       Debit               Credit

Jan 31            Supply expense                                  $2,800

                      Supplies                                                                   $2,800

Date              Account Title                                       Debit               Credit

Jan 31            Interest Receivable                              $75

                    Allowance for Uncollectible                                         $75

Date              Account Title                                       Debit               Credit

Jan 31            Salaries expense                            $34,600

                    Allowance for Uncollectible                                     $34,600

Why are these the journal entries?

Bad debt expense would be:
= Amount determined to be uncollectible + Remaining accounts receivable that is uncollectible
= (4,000 x 20%) + (10,600 x 5%)

= $830

Supply expense:

= Supplies amount - Supplies at end of January

= 3,600 - 800

= $2,800

Interest receivable:

= Note receivable x Interest / Number of months in year

= 15,000 x 6%/12

= $75

Salaries expenses are $34,600.

Find out more on uncollectible accounts at https://brainly.com/question/24871617.

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