At the End of the Current Year, the Trial Balance

question 20

Short Answer

At the end of the current year, the trial balance of Johannes' Sporting Goods Shop included the accounts and balances shown below. Credit sales were $180,000. Returns and allowances on these sales were $2,000. Assume that the firm bases its estimate of the loss from uncollectible accounts on 3 percent of accounts receivable. $$\begin{array} { l r } \text { Accounts Receivable } & \$ 36,000 \mathrm { Dr } . \\\text { Allowance for Doubtful Accounts } & 1,000 \mathrm { Dr } . \\\text { Sales } & 290,000 \mathrm { Cr } . \\\text { Sales Returns and Allowances } & 4,000 \mathrm { Dr } .\end{array}$$ 1. What is the balance in the Allowance for Doubtful Accounts account after the adjusting entry for the estimated loss from uncollectible accounts is posted?
2. What is the amount of the adjusting entry for the estimated loss from uncollectible accounts?

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Definitions:

Classical Conditioning

The acquisition of knowledge that takes place by associating an external stimulus with a naturally existing stimulus, which triggers a deliberate response.

Operant Conditioning

A learning process in which the probability of a response is changed by its consequences, with behaviors being strengthened or weakened by reinforcements or punishments.

Fear Conditioning

A behavioral paradigm in which organisms learn to predict aversive events, showing that certain stimuli can be associated with fear responses.

Punishment

The imposition of a penalty as a response to an undesired behavior, intended to decrease that behavior's occurrence.