DE8-5 During its first year of operations, SBC Communications had net sales of $600.000. all on account. Industry experience suggests that SBC's bad debts will amount to 2% of net sales. At December 31, 20x3, SBC's accounts receivable total $90,000. The company uses the allowance method to account for uncollectibles. 1.Journalize SBC's uncollectible-account expense using the percent-of-sales method.

2. Show how SBC should report accounts receivable on its balance sheet at December 31.

20X3. Follow the reporting format illustrated in the middle of page 314.