LESSON 14-4 5/14/2018 LESSON 14-4 Planning and Recording an Allowance for Uncollectible Accounts Adjustment

ALLOWANCE METHOD OF RECORDING LOSSES FROM UNCOLLECTIBLE ACCOUNTS page 419 LESSON 14-4

ESTIMATING UNCOLLECTIBLE ACCOUNTS EXPENSE page 420 Estimated Uncollectible Accounts Expense = Percentage × Total Sales on Account $124,500.00 × 1% = $1,245.00 LESSON 14-4

ANALYZING AND RECORDING AN ADJUSTMENT FOR UNCOLLECTIBLE ACCOUNTS EXPENSE page 421 3 1 2 1. Enter the estimated uncollectible amount. 2. Enter the same amount in the Adjustments Debit column. 3. Label the two parts with a small letter e in parentheses. LESSON 14-4

TERMS REVIEW uncollectible accounts page 422 uncollectible accounts allowance method of recording losses from uncollectible accounts book value book value of accounts receivable LESSON 14-4