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allowance for doubtful accounts has a debit balance of $304 at the end of the year (before adjustment), and bad debt expense is estimated at 2% of credit sales. if credit sales are $959,100, the amount of the adjusting entry for uncollectible accounts is

Sagot :

Allowance for Doubtful Accounts is a contra asset (Accounts Receivable) account.  It is a way for prudently providing for credit losses.  The Bad Debt Expense account is the account where the expense for uncollectible for the period is charged. Uncollectible accounts is $18,878

Given the above information, the amount of the adjusting entry to record the estimated uncollectible account receivable is below

= Bad debt expense × Net credit sales

= 2% × $959,100

= $19,182

Then,

=Balance - Allowance for doubtful account (debit balance)

= $19,182 - $304

= $18,878

hence, the amount of the adjusting entry to record the estimated uncollectible account receivable is $18,878

Know more on calculation of Allowance for Doubtful Accounts - https://brainly.com/question/24047827

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