At the End of the Current Year, the Trial Balance

question 40

Short Answer

At the end of the current year, the trial balance of Tracey's Consulting Services included the accounts and balances shown below. Credit sales were $90,000. Returns and allowances on these sales were
$1,000. Assume that the firm bases its estimate of the loss from uncollectible accounts on 0.4 percent of net credit sales.

1. What is the estimated loss from uncollectible accounts for the current year?
2. What is the amount of the adjusting entry for the estimated loss from uncollectible accounts?

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Definitions:

Berlin

The capital and largest city of Germany, known for its history, culture, and role in global politics.

Reichstag

The historic parliament building in Germany, also used to refer to the parliamentary assemblies in the German Empire, Weimar Republic, Nazi Germany, and the Federal Republic.

Polish Civilians

Refers to the non-military population of Poland, especially significant in historical contexts involving wartime events and occupations.

Warsaw

The capital and largest city of Poland, known for its historical significance and vibrant culture.