Prepare Adjusting Journal Entries for the Following Independent Situations

question 16

Essay

Prepare adjusting journal entries for the following independent situations.
a.The Allowance for Uncollectible Accounts has a $400 debit balance prior to adjustment.Based on an aging schedule of accounts receivable prepared on December 31,$11,800 of accounts receivable are estimated to be uncollectible.
b.The Allowance for Uncollectible Accounts has a $900 credit balance prior to adjustment.Based on an aging schedule of accounts receivable prepared on December 31,$14,500 of accounts receivable are estimated to be uncollectible.

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Definitions:

Standard

A set of guidelines or principles established as a basis for comparison or measurement in quality assessment, production, and compliance.

Budget

A financial plan for a defined period, outlining an organization's projected revenues, expenses, and capital expenditures.

Standard Costs

Pre-determined or estimated costs of manufacturing, selling, or performing a service under normal conditions.

Management By Exception

A management strategy where only significant deviations from a budget or plan are brought to the attention of management.