During its first year of operations, Chocolate Passion, Inc., had sales of $361,000, all on account. Industry

Question:

During its first year of operations, Chocolate Passion, Inc., had sales of $361,000, all on account. Industry experience suggests that Chocolate Passion’s uncollectibles will amount to 2% of credit sales. At December 31, 2012, total $35,000. The company uses the allowance method to account for uncollectibles.
1. Make Chocolate Passion’s journal entry for uncollectible-account expense using the percent-of- sales method.
2. Show how Chocolate Passion should report on its at
December 31, 2012.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...