Question

Entry for Uncollectible Accounts Performance Bike Co. has determined that the proper balance for the Allowance for Doubtful Accounts at December 31 is $39,044. Assume that the allowance for doubtful accounts for Performance Bike Co. had a debit balance of $7,030 as of December 31. Journalize the adjusting entry for uncollectible accounts as of December 31.

Answer 1

Answer: This transaction can be Journalized as follows :-

December 31. Bad debt expense A/C Dr. $46,074

To allowance for doubtful accounts $46,074

(adjusting allowance account to total uncollectibles)

Step-by-step explanation:

bad debt expense = doubtful accounts debit balance + desired balance for doubtful accounts

= $39044 + $7030

=$ 46,074