Calculation of the Allowance for Doubtful Accounts
Please provide calculations:
15. ABC company uses the estimate of sales method of accounting for uncollectible accounts. ABC estimates that 3% of all credit sales will be uncollectible. On January 1, 2005, the Allowance for Doubtful Accounts had a credit balance of $2,400. During 2005, ABC wrote-off accounts receivable totaling $1,800 and made credit sales of $100,000. After the adjusting entry, the December 31, 2005, balance in the Uncollectible Accounts Expense would be ________. (Points: 4)
$1,200
$3,000
$3,600
$7,200
16. Allowance for Doubtful Accounts has a credit balance of $1,500 at the end of the year (before adjustment), and an analysis of customers’ accounts indicates doubtful accounts of $17,900. Which of the following entries records the proper provision for doubtful accounts? (Points: 4)
debit Allowance for Doubtful Accounts, $16,400; credit Uncollectible Accounts Expense, $16,400
debit Allowance for Doubtful Accounts, $19,400; credit Uncollectible Accounts Expense, $19,400
debit Uncollectible Accounts Expense, $19,400; credit Allowance for Doubtful Accounts, $19,400
debit Uncollectible Accounts Expense, $16,400; credit Allowance for Doubtful Accounts, $16,400
