A company reports the following amounts at the end of the year (before adjustment): (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Credit sales for the year Accounts receivable Allowance for uncollectible accounts $ 129,000 31,000 2,100 (credit) Required: 1. Record the adjusting entry for uncollectible accounts using the percentage of receivables method, assuming the company estimates 11% of receivables will not be collected. 2. Record the adjusting entry for uncollectible accounts using the percentage-of-credit-sales method, assuming the company estimates 5% of credit sales will not be collected.

A company reports the following amounts at the end of the year (before adjustment): (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Credit sales for the year Accounts receivable Allowance for uncollectible accounts $ 129,000 31,000 2,100 (credit) Required: 1. Record the adjusting entry for uncollectible accounts using the percentage of receivables method, assuming the company estimates 11% of receivables will not be collected. 2. Record the adjusting entry for uncollectible accounts using the percentage-of-credit-sales method, assuming the company estimates 5% of credit sales will not be collected.

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter14: Accounting For Uncollectible Accounts Receivable

Section: Chapter Questions

Problem 1AP

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