Customer owing $ 6000 declared bankruptcy
Estimate of uncollectible accounts is 3% of A/R

In unadjusted trial bal
I have
A/R DR 250,000
Allowance for doubt ful A/C CR 15,000


As part of TRIAL BAL
I did A/R CR 6000
And Allowance for doubt ful A/C DR 6000


Also part of question is "Estimate of uncollectible accounts is 3% of A/R"
If I take 244000 and 3% uncollectible it comes to 7320
Where as in my allowance for Doubt ful A/C Bal is 9000 after adjustments.

So not sure what I have to do when they are saying "Estimate of uncollectible accounts is 3% of A/R"

No answers Yet