Question

Kirchhoff Industries has computed that the proper balance for the Allowance for Doubtful Accounts at August 31 is $67,697. Assume that the allowance for doubtful accounts for Kirchhoff Industries has a credit balance of $14,215 before adjustment on August 31.Journalize the adjusting entry for uncollectible accounts as of August 31.

Answer 1

Answer:

The journal entry is as follows:

On August 31,

Bad expense A/c Dr. $53,482

      To Allowance for doubtful accounts    $53,482

(To record the adjustment entry to increase allowance for doubtful accounts)

Working notes:

Allowance for doubtful accounts:

= Allowance for Doubtful Accounts at August 31 - Allowance for doubtful accounts before adjustment on August 31

= $67,697 - $14,215

= $53,482