At the End of the Current Year, the Trial Balance

question 70

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. $\begin{array}{lr}\text { Accounts Receivable } & \$ 18,000 \mathrm{Dr} \\\text { Allowance for Doubtful Accounts } & 500 \mathrm{Dr} \text {. } \\\text { Sales } & 145,000 \mathrm{Cr} \text {. } \\\text { Sales Returns and Allowances } & 2,000 \mathrm{Dr} \text {. }\end{array}$ 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:

Human Resource Management

The strategic approach to effectively managing an organization's employees and workplace culture to achieve its business objectives.

Organizational Performance

The analysis of a company's performance as measured through indicators such as profitability, revenue, efficiency, and overall success in achieving its goals and objectives.

Promotion

The advancement of an employee within a company to a higher position, often accompanied by an increase in responsibility and pay.

Transfer

The act of moving assets, responsibilities, or employees from one place, position, or ownership to another within or between organizations.