JournaldrillBad debts: aging method
A journal entry exercise from Journaldrill. Solve it with an account picker and debit and credit fields in your browser, and it is checked the moment you submit.
The task
An aging of Copperline Tools' receivables at year end shows that $9,450 of accounts are expected to be uncollectible. Before adjustment, Allowance for Doubtful Accounts has a credit balance of $2,100. Record the year-end adjustment.
What this exercise teaches
The allowance must end at $9,450. It already holds a $2,100 credit, so the adjustment is $9,450 - $2,100 = $7,350.
A hint if you get stuck
The aging sets the target ending balance of the contra-asset, so record only what is needed to reach it.
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