contestada

At the beginning of the year, Mitchum Enterprises allows for estimated uncollectible accounts of $14,000. By the end ofthe year, actual bad debts total $15,000. Record the write-off to uncollectible accounts. Following the write-off, what is thebalance of Allowance for Uncollectible Accounts?

Respuesta :

Answer:

1. Allowance for uncollectible accounts A/c Dr $15,000

             To Account receivable A/c $15,000

(Being write off amount is recorded)

2. $1,000 debit

Explanation:

1. The journal entry is shown below:

Allowance for uncollectible accounts A/c Dr $15,000

             To Account receivable A/c $15,000

(Being write off amount is recorded)

2. And, the balance of Allowance for Uncollectible Accounts would be

= Beginning balance of estimated uncollectible accounts - written off balance

= $14,000 - $15,000

= $1,000 debit

ayokenny2001

The balance of Allowance for Uncollectible Accounts in favor of  Mitchum Enterprises is $1,000 debit

What is uncollectible account?

Uncollectible accounts also known as bad debts, are debts owned by people to an organization. They are receivables that virtually have no value since they will not be repaid.

The journal entry for Mitchum Enterprises

Allowance for uncollectible accounts A/c Dr $15,000

               To Account receivable A/c $15,000

(Being write off amount is recorded)

Then, the balance of Allowance for Uncollectible Accounts would be

= Beginning balance of estimated uncollectible accounts - written off balance

= $14,000 - $15,000

= $1,000 debit

Hence,  the balance of Allowance for Uncollectible Accounts is $1,000 debit

Learn more about Allowance for Uncollectible Accounts here: https://brainly.com/question/25654164

Otras preguntas