Pincus associates uses the allowance method to account for bad debts. during 2021, its first year of operations, pincus provided a total of $268,000 of services on account. in 2021, the company wrote off uncollectible accounts of $10,800. by the end of 2021, cash collections on accounts receivable totaled $226,800. pincus estimates that 5% of the accounts receivable balance at 12/31/2021 will prove uncollectible. required 1. & 2. what journal entry did pincus record to write off uncollectible accounts during 2021 and to recognize bad debt expense for 2021?

What journal entry did Pincus record to write off uncollectible accounts during 2021

In 2021, the company wrote off uncollectible accounts of $10,800.  

Dr Allowance for Uncollectible Accounts$ 10,800

Cr Accounts receivable$ 10,800

and to recognize bad debt expense for 2021?

Pincus estimates that 5% of the accounts receivable balance at 12/31/2021 will prove uncollectible  

Dr Bad Debt Expense$ 1,520

Cr Allowance for Uncollectible Accounts$ 1,520

Explanation:

Pincus provided a total of $268,000 of services on account  

Dr Accounts receivable$ 268,000  

Cr Sales$ 268,000  

In 2021, the company wrote off uncollectible accounts of $10,800.    

Dr Allowance for Uncollectible Accounts$ 10,800  

Cr Accounts receivable$ 10,800  

If the company use the allowance method to account for bad debts, at the moment of the write off the company debits the Allowance for Uncollectible Accounts that was previously estimated with a credit to account receivable, to reflect the new accounts receivable balance.

By the end of 2021, cash collections on accounts receivable totaled $226,800  

Dr CASH$ 226,800  

Cr Accounts receivable$ 226,800  

BALANCE  

Dr Accounts receivable$ 30,400  

Pincus estimates that 5% of the accounts receivable balance at 12/31/2021 will prove uncollectible  

Dr Bad Debt Expense$ 1,520  

Cr Allowance for Uncollectible Accounts$ 1,520  

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.

answer; automated fingerprint;