Brief Exercise 7-5 (Part Level Submission) Wilton, Inc. had net sales in 2014 of
ID: 2416268 • Letter: B
Question
Brief Exercise 7-5 (Part Level Submission)
Wilton, Inc. had net sales in 2014 of $1,420,600. At December 31, 2014, before adjusting entries, the balances in selected accounts were: Accounts Receivable $214,800 debit, and Allowance for Doubtful Accounts $3,250 credit.
Date
Account Titles and Explanation
Debit
Credit
allowance for doubtful accounts
Brief Exercise 7-5 (Part Level Submission)
Wilton, Inc. had net sales in 2014 of $1,420,600. At December 31, 2014, before adjusting entries, the balances in selected accounts were: Accounts Receivable $214,800 debit, and Allowance for Doubtful Accounts $3,250 credit.
Assume that 11% of accounts receivable will prove to be uncollectible. Prepare the entry to record bad debt expense. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) I got the first answer which is 20,378. I just don't know what to put for allowance for doubtful accounts.Date
Account Titles and Explanation
Debit
Credit
December 31, 2014bad debt expense
allowance for doubtful accounts
Explanation / Answer
Statement showing computations Particulars Amount Accounts Receivable 214,800.00 Accounts expected to be uncollectible @11% 23,628.00 Existing balance in Allowance for Doubtful Accounts 3,250.00 New provision required 20,378.00 Particulars Dr Amt Cr Amt Bad debts Expense 20,378.00 To Allowance for doubtful Accounts 20,378.00