After Aging Its Accounts Receivable at December 31, Howland Company

question 108

Essay

After aging its accounts receivable at December 31, Howland Company estimates that $68,000 of the $835,000 outstanding accounts receivable will prove uncollectible. The Allowance for Doubtful Accounts has a debit balance of $6,200 prior to adjustment. In the space provided, prepare the adjusting entry required by Huey in this situation:
$$\begin{array} { | l | l | l | l | } \hline \text { Dec. 31 } & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline\end{array}$$

---

Definitions:

Opec

The Organization of Petroleum Exporting Countries, an intergovernmental organization of oil-producing countries that coordinates and unifies petroleum policies.

Oligopoly

A market structure characterized by a small number of large firms that have significant control over market prices and competition.

Game-Theory

A mathematical framework used for analyzing situations in which players make strategic decisions that affect the outcomes of all participants.

Games-Of-Chance

Activities in which outcomes are determined primarily by random factors, usually for gambling or entertainment purposes.