At the End of the Current Year, the Trial Balance

question 12

Short Answer

At the end of the current year, the trial balance of Bianca's Exports included the accounts and balances shown below. Credit sales were $9,200,000. Returns and allowances on these sales were
$55,000. Assume that the firm bases its estimate of the loss from uncollectible accounts on 4 percent of accounts receivable.
Accounts Receivable $ 1,960,000 Dr.
Allowance for Doubtful Accounts 8,300 Cr.
Sales 14,000,000 Cr.
Sales Returns and Allowances 110,000 Dr.
1. What is the amount of the adjusting entry for the estimated loss from uncollectible accounts?
2. What is the balance in the Allowance for Doubtful Accounts account after the adjusting entry for the estimated loss from uncollectible accounts is posted?

---

Definitions:

Causal Attribution

The process of inferring causes for observed behavior, often relating to how individuals explain their own or others' behaviors.

Seligman

Refers to Martin E. P. Seligman, a psychologist known for his work on learned helplessness, positive psychology, and wellbeing.

Personal-Universal

Refers to a concept or phenomenon that is deeply individual yet simultaneously relevant across a wide range of people, transcending personal experiences to touch upon universal themes.

Depressed Individuals

People experiencing a persistent feeling of sadness and loss of interest, which differs from normal sadness or grief.