90.2K

Verified Solution

Link Copied!

Pincus Associates uses the allowance method to account for bad debts. During 2021. its first year of operations, Pincus provided a total of $268,000 of services on account. In 2021, the company wrote off uncollectible accounts of $10,800. By the end of 2021, cash collections on accounts receivable totaled $226,800. Pincus estimates that 5% of the accounts receivable balance at 12/31/2021 will prove uncollectible. Required: 1. & 2. What journal entry did Pincus record to write off uncollectible accounts during 2021 and to recognize bad debt expense for 2021? (If no entry is required for a transaction/event, select "No lournal entry required in the first account field.) View transaction list Journal entry worksheet Record the write-offs of allowance for uncollectible accounts during 2021 Note: Enter debits before credits Event General Journal Debit Credit Record entry Clear entry View general journal Pincus Associates uses the allowance method to account for bad debts. During 2021, its first year of operations, Pincus provided a total of $268,000 of services on account. In 2021, the company wrote off uncollectible accounts of $10,800. By the end of 2021, cash collections on accounts receivable totaled $226,800. Pincus estimates that 5% of the accounts receivable balance at 12/312021 will prove uncollectible. Required: 1. & 2. What journal entry did Pincus record to write off uncollectible accounts during 2021 and to recognize bad debt expense for 2021? (if no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet

Answer & Explanation Solved by verified expert

See Answer