Cottage Sales Company made most of its sales on credit during its first year of operation, 2010 . At the end of the year, accounts receivable amounted to $100,000 . On December 31, 2010, management reviewed the collectible status of the accounts receivable. Approximately $6,000 of the $100,000 of accounts receivable were estimated to be uncollectible. As per the accounts receivable aging method
the adjusting entry that would be made on December 31 of that year is:
a. Uncollectible Accounts Expense 6,000
Accounts receivable 6,000
b. Allowance for Uncollectible Accounts 10,000
Uncollectible Accounts Expense 10,000
c. Uncollectible Accounts Expense 6,000
Allowance for Uncollectible Accounts 6,000
d. Allowance for Uncollectible Accounts 10,000
Accounts receivable 10,000
C
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