The work sheet for River’s Edge Canoe & Kayak is included in your working papers. The trial balance is complete, and all of the adjustments except the one required for uncollectible accounts have been entered. 

Instructions

1. Record the adjustment for uncollectible accounts expense in the Adjustments section of the work sheet. Uncollectible accounts are estimated to be 1.5 percent of net sales. Label the adjustment (a).

2. Complete the work sheet.

3. Prepare an income statement, a statement of retained earnings, and a balance sheet.

4. Record the adjusting entries on page 18 of the general journal.

5. Post the adjusting entries. Record and post the closing entries.