Exercise 5-7 Record the adjustment for uncollectible accounts and calculate net

Question

Exercise 5-7 Record the adjustment for uncollectible accounts and calculate net realizable value 1L05-3) By the end 2018, cash Collections on these accounts total $103 Pave estimates that 30% ofthe ing 2018, ns srst year of operators. P ve C nst uctor pro des se i es on a cont of S 146 uncolected accounts will be bad debts Required: 1. Record the adjustment for un collectble aocounts on December 31, 2018 (r no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the adjustment entry for Uncollectible Accounts Note: Enter debits before credits Credit 2018 Record entry Clear entry View general journal 2. Calouate the net realizabie value of accounts recelvable. realizabie value

Explanation / Answer

Adjusting entry :

2) Calculate net realizable value :

Date accounts & explanation debit credit Dec 31,2018 Bad debt expense (146000-103000)*30% 12900     Allowance for doubtful accounts 12900 (To record adjusting entry)

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