Generally, for an activity to be treated as a trade or business, which of the following is required: 1. Regular and continual effort designed to seek profit
2. Organization as a corporation or partnership
3. Always generate a profit
4. No more than intermittent effort toward the activity

Record the journal entry for the provision for uncollectible accounts under each of the following independent assumptions: a. the allowance for doubtful accounts before adjustment has a credit balance of $500. b. the allowance for doubtful accounts before adjustment has a debit balance of $250. c. assume that octoberʼs credit sales were $70,000. uncollectible accounts expense is estimated at 2% of sales. smith, gaylord n.. excel applications for accounting principles (p. 51). cengage textbook. kindle edition.