At the end of the year, Brinkley Incorporated’s balance of Allowance for Uncollectible Accounts is $2,000 (credit) before adjustment. The company estimates future uncollectible accounts to be 5% of credit sales for the year. Credit sales for the year total $115,000.   What is the adjusting entry Brinkley would record for Allowance for Uncollectible Accounts using the percentage-of-credit-sales method? (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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At the end of the year, Brinkley Incorporated’s balance of Allowance for Uncollectible Accounts is $2,000 (credit) before adjustment. The company estimates future uncollectible accounts to be 5% of credit sales for the year. Credit sales for the year total $115,000.

 

What is the adjusting entry Brinkley would record for Allowance for Uncollectible Accounts using the percentage-of-credit-sales method? (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

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