Prepare the adjusting entry to record the estimated uncollectible accounts expenses
Stone Furniture Store has credit sales of $400,000 in 2005 and a debit balance of $600 in the Allowance for Doubtful Accounts at year end. As of December 31, 2005 $130,000 of accounts receivables remain uncollected. The Credit manager prepared an aging schedule of accounts receivable and estimates that $5,000 will prove to be uncollectible
On March 4, 2006, the credit manager authorizes a write off the $1,000 balance owed by A. Lowell.
