Pincus Associates uses the allowance method to account for bad debts. During 2021, its first year...

Pincus Associates uses the allowance method to account for bad debts. During 2021, its first year of operations, Pincus provided a total of $212,000 of services on account. In 2021, the company wrote off uncollectible accounts of $8,500. By the end of 2021, cash collections on accounts recelvable totaled $178,500. Pincus estimates that 5% of the accounts receivable balance at 12/31/2021 will prove uncollectible.

Required:

1. & 2. What journal entry did Pincus record to write off uncollectible accounts during 2021 and to recognize bad debt expense for 2021? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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Expert Solution

ekkarill92 answered 1 year ago

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