(Learning Objective 4: Apply GAAP for uncollectible receivables) At December 31, 2014, State Line…

(Learning Objective 4: Apply GAAP for uncollectible receivables) At December 31, 2014, State Line Window Sales has an Accounts Receivable balance of $96,000. Allowance for Doubtful Accounts has a credit balance of $1,340 before the year-end adjustment. Credit Sales Revenue for 2014 was $608,000. State Line Window Sales estimates that doubtful-account expense for the year is 1% of credit sales. Make the year-end entry to record Doubtful-Account Expense. Show how Accounts Receivable and Allowance for Doubtful Accounts are reported on the balance sheet at December 31, 2014.

 

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