At the End of the Current Year, the Trial Balance

question 53

Short Answer

At the end of the current year, the trial balance of Monique's Fashion Industries included the accounts and balances shown below. Credit sales were $4,600,000. Returns and allowances on these sales were $27,500. Assume that the firm bases its estimate of the loss from uncollectible accounts on 0.3 percent of net credit sales. $\begin{array}{lr}\text { Accounts Receivable } & \$ 650,000 \mathrm{Dr} \\\text { Allowance for Doubtful Accounts } & 4,500 \mathrm{Cr} . \\\text { Sales } & 7,000,000 \mathrm{Cr} . \\\text { Sales Returns and Allowances } & 55,000 \mathrm{Dr} .\end{array}$ 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? (Round your answers to the nearest dollar.)

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Definitions:

Thorax

The part of the body between the neck and the abdomen, encased by the rib cage, and containing organs such as the heart and lungs.

Abdominopelvic Region

Refers to the combined area of the abdomen and the pelvis, enclosing the abdominal and pelvic cavities containing organs such as the stomach, liver, intestines, and bladder.

Neck

The part of the body connecting the head to the shoulders and torso, comprising vertebrae, muscles, blood vessels, and nerves.

Back

The posterior portion of the human body, extending from the neck to the lower end of the spine.