On December 31, 2016, Colonial Corporation Had the Following Account

Essay

On December 31, 2016, Colonial Corporation had the following account balances related to credit sales and receivables prior to recording adjusting entries: Required:
Prepare the necessary year-end adjusting entry related to uncollectible accounts for each of the following independent assumptions:
A.An aging of accounts receivable is completed.It is estimated that $2,150 of the receivables outstanding at year-end will be uncollectible.
B.Assume the same information presented in part A above except that, prior to adjustment, the allowance for doubtful accounts had a debit balance of $200 rather than a credit balance of $200.
C.It is estimated that a provision for bad debts is required for 1% of credit sales for the year.