Alice Bookstore has credit sales of $40,000

Alice Bookstore has credit sales of $40,000

Alice Bookstore has credit sales of $40,000 in 2014 remain uncollected and a debit balance of $1,000 in the Allowance for Doubtful Accounts at year end. The credit manager prepared an aging schedule of accounts receivable and estimates that $5,000 will prove to be uncollectible.Instructions(a) Prepare the adjusting entry to record the estimated uncollectible accounts expense in 2014.(b) Show the balance sheet presentation of accounts receivable on December 31, 2014.(c) On June 16, 2014 the credit manager authorizes a write-off of the $2,000 balance owed by J. Gary. Make the appropriate entry to record the write off of the J. Gary account.(d) Also show the balance sheet presentation of accounts receivable after such a write-off.


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