Question - The following information is obtained from the accounting records of Becker Inc.
Sales - $750,000
Accounts Receivable December 31, 2011 - $125,000
Allowances for Doubtful Accounts - $1,300 (CR)
Sales Discount - $50,000
Sales Return and Allowances - $12,000
Create the adjusting entries for the allowance for doubtful accounts under the following assumptions:
(a) 2% of the current accounts receivables are uncollectible.
(b) 2.5% of net sales are uncollectible.