The December 31, 2021, balance sheet of the Wildhorse Co. had Accounts Receivable of $730,000...
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Accounting
The December 31, 2021, balance sheet of the Wildhorse Co. had Accounts Receivable of $730,000 and a credit balance in Allowance for Doubtful Accounts of $32,000. During 2022, the following transactions occurred: sales on account $1,602,000; sales returns and allowances, $164,000; collections from customers, $1,341,000; accounts written off, $38,000; previously written off accounts of $9,000 were collected.
If the company uses the percentage of receivables basis to estimate bad debt expense and determines that uncollectible accounts are expected to be 7% of accounts receivable, what is the adjusting entry at December 31, 2022?
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