=20. Uncollectable Accounts.= In the closing entries of the last model set, we have shown that the gross trading profits are represented by the balance of trading account. All profits from other sources are credited directly to profit and loss account; likewise all other losses are charged directly to profit and loss. One such source of loss is _uncollectable accounts_. To charge the loss resulting from an uncollectable account against trading profits would create a false showing in respect to the trading profits during the current period, for the reason that the account may represent sales made during a former period. [Illustration: Scale Book] SAMPLE TRANSACTION =21.= The transactions which follow represent the business for the period covered: --Dec. 10-- Commenced business with the following assets: Cash $1,415.55 Due from L. B. Jenkins 24.45 --Dec. 10-- Bought from Lehigh Coal Co., on account, 25 tons nut coal $4.25 106.25 --Dec. 10-- Bought from Reading Coal Co., on account, 25 tons egg coal 4.25 106.25 15 tons pea coal 3.75 56.25 -------- 162.50 --Dec. 10-- Deposited cash 1,400.00 --Dec. 11-- Sold to Henry Newton 2,000# nut 5.25 5.25 --Dec. 11-- Sold to D. H. Kennedy 6,000# egg 5.75 17.25 4,000# nut 5.75 11.50 -------- 28.75 --Dec. 11-- Sold for cash 1,000# nut 5.25 2.63 --Dec. 12-- Sold to Andrew White 4,000# egg 5.75 11.50 1,000# pea 5.25 2.63 -------- 14.13 --Dec. 12-- Sold to F. W. Francis 6,000# nut 5.75 17.25 1,500# pea 5.25 3.94 -------- 21.19 --Dec. 12-- Sold for cash 4,000# nut 5.75 11.50 --Dec. 13-- Bought from Lackawanna Coal Co. 50 tons run of mine 3.25 162.50