Question

At the end of the year, Thomas Associates had a credit balance in its Allowance for uncollectible accounts of $6,000 before adjustment. The balance in Thomas's gross accounts receivable is $480,000. Thomas's management estimates that 9% of its accounts receivable balance will not be collected. Required: 1. What journal entry should Thomas record to adjust its Allowance for uncollectible accounts? 2. Assume the balance in Allowance for uncollectible accounts had been a DEBIT balance of $6,000 before adjustment. What journal entry should Thomas record to adjust its Allowance for uncollectible account?

          At the end of the year, Thomas Associates had a credit balance in its Allowance for uncollectible
accounts of $6,000 before adjustment. The balance in Thomas's gross accounts receivable is
$480,000. Thomas's management estimates that 9% of its accounts receivable balance will not
be collected.
Required:
1. What journal entry should Thomas record to adjust its Allowance for uncollectible accounts?
2. Assume the balance in Allowance for uncollectible accounts had been a DEBIT balance of
$6,000 before adjustment. What journal entry should Thomas record to adjust its Allowance
for uncollectible account?

At the end of the year, Thomas Associates had a credit balance in its Allowance for uncollectible
accounts of 6,000 before adjustment. The balance in Thomas's gross accounts receivable is480,000. Thomas's management estimates that 9% of its accounts receivable balance will not
be collected.
Required:
1. What journal entry should Thomas record to adjust its Allowance for uncollectible accounts?
2. Assume the balance in Allowance for uncollectible accounts had been a DEBIT balance of
6,000 before adjustment. What journal entry should Thomas record to adjust its Allowance
for uncollectible account?

Added by Luc-A N.

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