1 Question no. 1 Percent of sales method; write-off At year-end (December 31). Rashed Company estimates its bad debts as 0.8% of its annual credit sales of AED975,000, Rashed records its bad debts expense for that estimate. > On the following March 15, Rashed decides that the AED 1,250 account of A. Abdulla is uncollectible and writes it off as a bad debt. > On April 15, Abdulla unexpectedly pays the amount previously written ott. Required: Prepare the journal entries of Rashed to record these transactions and events of December 31, March 15, and April 15 Question 10.2 Percent of accounts receivable method At each calendar year-end. Estaim Electric Co. uses the percent of accounts receivable method to estimate bad debts On December 31, 2018, nhas outstanding accounts receivable of AED420,000, and it estimates tut 2.5 will be collectible Required: Prepare the dusting entry to record tod debts cxpense for year 2018 under the assumption that the Allowance for Doubtful Account has * AID2 10 balance before the adjustment and ALDI 300 db bilance before the MacBook Air BO 000 000 54 11 > 13 FS 56 77 FA 19 FO A * $ 4 % 5 & 7 II 0 6 7 8 V A 9 4 0 R T Y s Un O P ]