At the End of the Current Year, the Trial Balance $\begin{array}{lr}\text { Accounts Receivable } & \$ 36,000 \mathrm{Dr} \\\text { Allowance for Doubtful Accounts } & 1,000 \mathrm{Dr}\end{array}$

question 76

Short Answer

At the end of the current year, the trial balance of Cary's Craft Shop included the accounts and balances shown below. Credit sales were $290,000. Returns and allowances on these sales were $4,000. Assume that the firm bases its estimate of the loss from uncollectible accounts on 0.3 percent of net credit sales. $\begin{array}{lr}\text { Accounts Receivable } & \$ 36,000 \mathrm{Dr} \\\text { Allowance for Doubtful Accounts } & 1,000 \mathrm{Dr}\end{array}$ 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?

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Definitions:

Physiology

The science of how the body and its systems work, including biological and chemical processes.

Wilhelm Wundt

Often regarded as the father of experimental psychology, he established the first psychology laboratory in Leipzig, Germany, in 1879.

Independent Discipline

A field of study or area of professional practice that operates autonomously and is not dependent on other disciplines.

G. Stanley Hall

An American psychologist who is known for his contributions to developmental psychology and the founding of the American Psychological Association.