At the End of Year 2, the Unadjusted Trial Balance

Essay

At the end of Year 2, the unadjusted trial balance of Alaska Company includes $1,500,000 of outstanding accounts receivable and an Allowance for Uncollectible Accounts of $14,600.Total sales for the year are $22,200,000 and 85% of the sales were on account.The company estimates that 1.8% of credit sales are uncollectible and no entries have been made during the year to reflect these uncollectibles.Prepare the adjusting entry for the allowance for uncollectible accounts.