Task:
If a company made a credit sales of $500,000 during 2008. Experience indicates that uncollectible -account expense is 1/2 of 1% of credit sales.
At December 31s,2008, Company's account Receivable balance is $130,000 and Allowance for Uncollectibles stands at $1,600 before the year end adjustment.
How would I go about recording Uncollectible-account expense for 2008. Then report Company's Software 's receivables, net of the allowance, at December 31st, 2008.