A trial balance before adjustment included the following: Debit         Credit Accounts receivable                                       90,000 Allowance for doubtful accounts                                                 730 Sales                                                                                      360,000 Sales returns and allowances                       8,000 Give the journal entry assuming that the estimate of uncollectibles is determined by taking 5% of gross accounts receivable Solution Estimated amount of bad debts = Accounts receivable before adjustments .

1. A trial balance before adjustment included the following:
Debit Credit
Accounts receivable 90,000
Allowance for doubtful accounts 730
Sales 360,000
Sales returns and allowances 8,000
Give the journal entry assuming that the estimate of uncollectibles is determined by taking 5% of
gross accounts receivable
Solution
Estimated amount of bad debts = Accounts receivable before adjustments