[se7en.14]

Hi,

Page F4-15. I understand how they got to the solution but not why on the journal entry adjustment for $1000.

it seems to be decreasing the “allowance for uncollectible accts” and “bad debt expense”. I don’t understand why.

Does the uncollectible accts have to be 20,500 no matter what for ending balance?

If someone could explain it to me, I would be delighted.

(if they explain it in lectures, im sorry I dont have them…if anyone would like to share where i can get lectures please let me know! thanks)

Thank you!

.

[KelzMS]

Yes, the allowance for uncollectible accounts needs to be $20,500. Per the aging schedule they want an ending balance of $20,500 because that is what they are estimating is uncollectible. However, when you do the year-end adjustments it is 1,000 over the desired balance so you have to decrease the allowance by debiting it.

I hope this helps, I am not a very good explainer. 🙁 That is why I did not go to school to be a teacher. 🙂

As far as the lectures go, the only way I know to get them is if you buy the software.

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[se7en.14]

thanks so much!! good luck on ur exam coming up!! 😀

.

[KelzMS]

You are very welcome. Thanks. Good luck to you as well!

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[Author]

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