At the end of the year, Mercy Cosmetics balance of Allowance for Uncollectible Accounts is $490

Brief Exercise 5-6 Record the adjusting for uncollectible accounts (L05-5)

At the end of the year, Mercy Cosmetics balance of Allowance for Uncollectible Accounts is $490 (credid before adjustment. The balance of Accounts Receivable is $19,500. The company estimates that 10% of accounts will not be collected over the next year.

What adjustment would Mercy Cosmetics record for Allowance for Uncollectible Accounts? (if no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Expert Solution

1
General Journal	Debit	Credit
Bad Debts expense	1460		=(19500*10%)-490
Allowance for Uncollectible accounts		1460

2
General Journal	Debit	Credit
Bad Debts expense	3154		=(26600*9%)+760
Allowance for Uncollectible accounts		3154

3
Year	Interest revenue
2021	500	=250008%3/12
2022	1500	=250008%9/12

ekkarill92 answered 2 years ago

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