Response to the following problem:
This company prepares financial statements only once a year. In accounting for uncollectible accounts it uses the allowance method.
For the most recent year give general journal entries for the following.
Beginning of the year balances:no journal entries needed for begenning
Accounts Receivable 411,212
Allowance for uncollectible accounts 8,690
Uncollectible Accounts Expense ?
1 Sales for the year were 1,662,000. 75% of sales are credit sales
2 Collection on credit sales for the year were 970,000
3 Wrote off 8300 of specific customer accounts
4a At year end estimate uncollectible accts to be 1.25% of credit sales
4b Instead of 4a, the company ages it receivables and estimated 8700 as uncollectible.