Question

biowares year - end unadjusted trial balance shows accounts receivable of $22,000 and sales of $330,000. uncollectibles are estimated to be 2% of sales.
prepare the december 31 year - end adjusting entry for uncollectibles using the percent of sales method.
view transaction list
journal entry worksheet
1
record the estimate of uncollectibles.
note: enter debits before credits.
date general journal debit credit
december 31

Explanation:

Step1: Calculate bad debt expense

Bad debt expense = Sales × Estimated uncollectible percentage.
Bad debt expense = \(330000\times2\%= 330000\times0.02 = 6600\)

Step2: Record the adjusting entry

Debit Bad Debt Expense (increases expense) and credit Allowance for Doubtful Accounts (contra - asset account, increases).

Answer:

Date	General Journal	Debit	Credit
	Allowance for Doubtful Accounts		\(6600\)