illustration entries for uncollectible accounts receivable

Allowance for Uncollectible Accounts
Illustrative Entries

Establish Allowance:

12-31-X5	Uncollectible Accounts Expense	75,000
	Allow. for Uncollectible Accounts		75,000
	To add 3% of sales to the allowance account ($2,500,000 X 3% = $75,000)

Write-off Account

3-15-X3	Allow. for Uncollectible Accounts	1,000
	Accounts Receivable		1,000
	To write-off of an uncollectible account