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McKinney & Co. estimates its uncollectible accounts as a percentage of credit sales. McKinney made...

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Accounting

McKinney & Co. estimates its uncollectible accounts as a percentage of credit sales. McKinney made credit sales of $2,800,000 in 2019. McKinney estimates 3.5% of its sales will be uncollectible.

Required:

Prepare the journal entry to record bad debt expense for McKinney at the end of 2019.

CHART OF ACCOUNTSMcKinney & Co.General Ledger

ASSETS
111 Cash
121 Accounts Receivable
122 Allowance for Doubtful Accounts
141 Inventory
152 Prepaid Insurance
181 Equipment
198 Accumulated Depreciation
LIABILITIES
211 Accounts Payable
231 Salaries Payable
250 Unearned Revenue
261 Income Taxes Payable
EQUITY
311 Common Stock
331 Retained Earnings
REVENUE
411 Sales Revenue
EXPENSES
500 Cost of Goods Sold
511 Insurance Expense
512 Utilities Expense
521 Salaries Expense
532 Bad Debt Expense
540 Interest Expense
541 Depreciation Expense
559 Miscellaneous Expenses
700

Income Tax Expense

Prepare the journal entry to record bad debt expense for McKinney on December 31.

General Journal Instructions

PAGE 1

GENERAL JOURNAL

DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT

1

2

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