On December 31, 2018, Colonial Corporation had the following account balances related to credit sales...
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On December 31, 2018, Colonial Corporation had the following account balances related to credit sales and receivables prior to recording adjusting entries: - Sales Revenue +Accounts Receivable Allowance for Doubtful Accounts+ 25,000 200 400,000 Present the necessary year-end adjusting entry related to uncollectible accounts for each of the following independent assumptions. You are to assume that the Sales Revenue T account is all credit sales. You must show your work to receive full credit. 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. It is estimated that 1% of credit sales for the year will prove to be uncollectible C. Now assume the following balances in each T account below +Accounts Receivable - Allowance for Doubtful Accounts - Sales Revenue + 25,000 200 400,000 Present the necessary year-end adjusting entry related to uncollectible accounts
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