Southwest pediatrics has the following balances on december 31, 2021, before any adjustment: accounts receivable = $130,000; allowance for uncollectible accounts = $2,100 (debit). on december 31, 2021, southwest estimates uncollectible accounts to be 20% of accounts receivable. required: 1. record the adjusting entry for uncollectible accounts on december 31, 2021. (if no entry is required for a particular transaction/event, select "no journal entry required" in the first account field.)

Explanation:

Before passing the journal entry, we have to find out the bad debt expense amount which is shown below:

Bad debt expense = Account receivable balance × uncollectible percentage + debit uncollectible account balance

= $130,000 × 20% + $2,100

= $26,000 + $2,100

= $28,100

So, the journal entry would be

Bad debts expense A/c Dr $28,100

     To Allowance for uncollectible accounts $28,100

(Being uncollectible accounts is adjusted)

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