Question

At the beginning of the year, Mitchum Enterprises allows for estimated uncollectible accounts of $15,000. By the end of the year, actual bad debts total $17,000. value: 8.50 points 1. Record the write-off to uncollectible accounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

This journal entry reflects the recognition of the actual bad debt expense of $17,000 and adjusts the allowance account accordingly. The allowance for uncollectible accounts now reflects the true amount needed to cover expected losses, as determined by the actual bad debts incurred during the year.

To record the write-off of uncollectible accounts for Mitchum Enterprises:

Debit: Bad Debt Expense: $17,000

This represents the amount of actual bad debts incurred during the year.

Credit: Allowance for Uncollectible Accounts: $17,000

This reduces the balance in the allowance account, acknowledging that the estimated uncollectible accounts were insufficient to cover the actual bad debts.

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