Reconstructing events when using the allowance method. Selected data from the accounts of Logue Corporation before adjusting and closing entries appear below:

Logue Corporation estimates that 6 percent of sales, which are all on account, will become uncollectible. There were no recoveries during the year of accounts written off in previous years.

Set up T-accounts for each of the four accounts above and enter the balances on January 1 and December 31. Enter in the T-accounts the entries that Logue Corporation made for the following:

a. Sales on account during the year

b. Write-off of actual uncollectible accounts during the year

c. Collection of cash from customers from sales on account during the year

d. The adjusting entry on December 31 to provide for estimated uncollectible accounts

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January 1 December 31 Accounts Receivable $115,900 Dr. $122,700 Dr. Allowance for Uncollectible Accounts 18,200 Cr. 2,900 Dr. Bad Debt Expense... - Sales - 450,000 Cr.