1 answer

Brief Exercise 8-10 (Part Level Submission) During its first year of operations, Oriole Company had credit...

Question:

Brief Exercise 8-10 (Part Level Submission)

During its first year of operations, Oriole Company had credit sales of $3,170,200, of which $380,600 remained uncollected at year-end. The credit manager estimates that $17,750 of these receivables will become uncollectible.

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(a)

Prepare the journal entry to record the estimated uncollectibles. (Assume an unadjusted balance of zero in Allowance for Doubtful Accounts.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation

Debit

Credit


Answers

Account Titles and explanation Debit Credit
Bad debt Expense $17,750
...Allowance for doubtful Accounts $17,750
(To Record the estimated uncollectibles )
.

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