At the End of the Current Year, the Trial Balance $\begin{array}{lr}\text { Accounts Receivable } & \$ 650,000 \mathrm{Dr} \\\text { Allowance for Doubtful Accounts } & 4,500 \mathrm{Dr}\end{array}$

question 61

Short Answer

At the end of the current year, the trial balance of Kerry Hardware included the accounts and balances shown below. Credit sales were $7,000,000. Returns and allowances on these sales were $55,000. Assume that the firm bases its estimate of the loss from uncollectible accounts on 0.4 percent of net credit sales. $\begin{array}{lr}\text { Accounts Receivable } & \$ 650,000 \mathrm{Dr} \\\text { Allowance for Doubtful Accounts } & 4,500 \mathrm{Dr}\end{array}$ 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:

Employment

The condition of having paid work, or the relationship between an employer and an employee where the employee provides labor in exchange for compensation.

Collective Decision Making

The process where a group comes together to make decisions as a unit, sharing input and considering multiple viewpoints.

Work-Related Stress

Stress experienced by employees due to work demands or environment that exceeds their capacity to cope.

Definition Of Work

A description or measure of tasks, activities, and responsibilities assigned to an individual or team, often in exchange for payment.