Question

bioware’s year-end unadjusted trial balance shows accounts receivable of $26,000 and sales of $370,000. uncollectibles are estimated to be 2% of sales. prepare the december 31 year-end adjusting entry for uncollectibles using the percent of sales method. journal entry worksheet 1 record the estimate of uncollectibles. note: enter debits before credits. date general journal debit credit december 31

Explanation:

Step1: Calculate uncollectible amount

Uncollectibles = 2% of sales = \( 0.02 \times 370000 = 7400 \)

Step2: Journal entry for uncollectibles

Debit Bad Debt Expense (to recognize expense) and Credit Allowance for Doubtful Accounts (to record estimated uncollectibles).

Answer:

Date	General Journal	Debit	Credit
	Allowance for Doubtful Accounts		7400