Using the data in Exercise 9-11, assume that the allowance for doubtful accounts for Performance Bike Co. had a debit balance of $28,400 as of December 31.
Journalize the adjusting entry for uncollectible accounts as of December 31.
Answer:
Dec. 31 Bad Debt Expense400,900
Allowance for Doubtful Accounts400,900
Uncollectible accounts estimate
($372,500 + $28,400).