Question

87. Watson estimates its uncollectible accounts receivable based on aging. The balance of its allowance for uncollectible accounts after the adjustment will be Accounts Receiva ble balance % estimated uncollectible Balance Age 500 $5,000 $2,000 10% 0-30 600 30% 30+

Answer 1

87)

The balance in the uncollectible accounts after the adjustment is $1,100.

Age	Balance (a)	% Estimated uncollectible (b)	Uncollectibles (a*b)
0 -- 30 Days	$5,000	10%	$500
30 + Days	$2,000	30%	$600
		Balance of uncollectible accounts	$1,100

96)

Two Journal Entries:

Date	Account Titles and Explanations	Debit	Credit
Dec. 1	Accounts Receivable	$200
	Sales Revenue (2 pairs * $100 per pair)		$200
	(To record the sales made on account)
Dec. 1	Cost of Goods Sold	$150
	Inventory (2 pairs * $75 per pair)		$150
	(To record the cost of goods sold)