2)

Hello,

Hoping all is well. Please help, thank you so much.

Uncollectible AccountsPercentage of Sales and Percentage of Receivables

At the completion of the current fiscal year ending December 31, the balance of Accounts Receivable for Yang's Gift Shop was $32,000. Credit sales for the year were $360,000.

Required:

Question Content Area

Make the necessary adjusting entry in general journal form under each of the following assumptions. Show the calculation for net realizable value.

1. Allowance for Doubtful Accounts has a credit balance of $340.

a. The percentage of sales method is used and bad debt expense is estimated to be 2% of credit sales.

credit sales. Page: DOC. POST. ACCOUNT TITLE NO. REF. DATE DEBIT CREDIT 1 20- Dec. 31 1 2 2 3 3 Accounts receivable, December 31, 20-- Less allowance for doubtful accounts Net realizable value b. The percentage of receivables method is used and an analysis of the accounts produce estimate of $5,800 in uncollectible accounts. Page: ACCOUNT TITLE DOC. POST. DEBIT NO. REF. DATE CREDIT 1 20-- Dec. 31 1 2 2 w N 3 Accounts receivable, December 31, 20-- Less allowance for doubtful accounts Net realizable value 00 2. Allowance for Doubtful Accounts has a debit balance of $380. a. The percentage of sales method is used and bad debt expense is estimated to be 1.5% of credit sales. Page: DOC. POST ACCOUNT TITLE DEBIT CREDIT NO. REF. DATE 1 20-- Dec. 31 1 2 2 3 3 Accounts receivable, December 31, 20-- Less allowance for doubtful accounts Net realizable value b. The percentage of receivables method is used and an analysis of the accounts produces ar estimate of $5,600 in uncollectible accounts. Page: DOC. POST. DATE ACCOUNT TITLE CREDIT NO. REF. 20-- Dec. 31 DEBIT 1 1 2 Nm 3 3 Accounts receivable, December 31, 20-- Less allowance for doubtful accounts Net realizable value