Using data in Exercise 9-9, assume that the allowance for doubtful accounts for Kirchhoff Industries has a credit balance of $10,112

Using data in Exercise 9-9, assume that the allowance for doubtful accounts for Kirchhoff Industries has a credit balance of $10,112 before adjustment on August 31. Journalize the adjusting entry for uncollectible accounts as of August 31.

Answer:

Aug. 31 Bad Debt Expense121,600

Allowance for Doubtful Accounts121,600

Uncollectible accounts estimate

($131,712 – $10,112).