During 2018, its first year of operations, Pave Construction provides services on account of $142,000. By the end of 2018, cash collections on these accounts total $101,000. Pave estimates that 25% of the uncollected accounts will be bad debts. Required:
Record the adjustment for uncollectible accounts on December 31, 2018.

Dr Bad Debt Expense 10,250

Cr Allowance for Uncollectible Accounts 10,250

Explanation:

Preparation of the Journal entry to Record the adjustment for uncollectible accounts on for Pave Construction

Since we were told that the company provides services on account of the amount of $142,000 in which by the end of the year 2018, the cash collections total the amount of $101,000 which means we have to less $101,000 from $142,000 which gave us $41,000.

We were as told that Pave estimates that 25% of the uncollected accounts will be bad debts this means we have to find the 25% of $41,000 which gave us $10,250.

Therefore the transaction will be recorded as:

Dr Bad Debt Expense 10,250

Cr Allowance for Uncollectible Accounts 10,250

($41,000 x 25%)

Service provided $142,000- Cash collection $101,000=$41,000

answer(b); ; ; the quantitative or qualitative variable for which the experimenter wishes to determine how its value is affected by the explanatory variable;