On December 31,2011,Colonial Corporation Had the Following Account Balances Related

question 87

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On December 31,2011,Colonial Corporation had the following account balances related to credit sales and receivables prior to recording adjusting entries:
$$\begin{array} { l r r } \text { Accounts receivable } & \$ 25,000 & \\\text { Allowance for doubtful accounts } & 200 & \text { (credit) } \\\text { Sales revenue (all credit sales) } & 400,000 &\end{array}$$ Requirements:
Present the necessary year-end adjusting entry related to uncollectible accounts for each of the following independent assumptions:
A.An aging of accounts receivable is completed.It is estimated that $2,150 of the receivables outstanding at year-end will be uncollectible.
B.It is estimated that 1% of credit sales for the year will prove to be uncollectible.
C.Assume the same information presented in part A.Except that prior to adjustment,the allowance for doubtful accounts had a debit balance of $200 rather than a credit balance of $200.

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Definitions:

Intercostal Artery

An artery that runs between the ribs, supplying blood to the chest wall and surrounding muscles.

Brachial Artery

The major blood vessel of the upper arm that supplies blood to the arm and hand.

Axillary Artery

A major blood vessel that carries oxygenated blood to the lateral aspect of the torso, armpit, and upper limb.

Median Cubital Artery

The median cubital artery is a superficial blood vessel in the elbow region that connects the cephalic and basilic veins and is often used for venipuncture.