Question

Kirchhoff Industries has computed that the proper balance for the Allowance for Doubtful Accounts at August 31 is $67,937. Assume that the allowance for doubtful accounts for Kirchhoff Industries has a credit balance of $14,265 before adjustment on August 31. Journalize the adjusting entry for uncollectible accounts as of August 31.

Answer 1

Step-by-step explanation:

The journal entry to record the bad debt expense is shown below:

Bad debt expense A/c Dr $4,698

To Allowance for doubtful debts $4,698

(Being bad debt expense is recorded)

The computation of the bad debt expense is shown below:

= Allowance for Doubtful Accounts - credit balance of Allowance for Doubtful Accounts)

= $67,937 - $14,265

= $53,672