3 50% The Account Receivable from S. Smith of $500 is uncollectible. The receivable has been on the books for over a year. Dec. 15 Sold merchandise to a customer using the Access credit card. The merchandise was sold for $700 and had cost $450. Dec. 17 Sold merchandise on credit to a frequent customer. The merchandise had cost $1,950 and was sold for $3,000. Dec. 21 Collected the balance due from the Dec. 3 sale. Dec. 25 Collected the balance due from the Access Co. Dec. 31 Recorded the allowance for bad debts for the month. Based on previous experience the bad debts are estimated to be 1% of all outstanding receivables. Required:\f(720Example%20%237.pdf About Form W-4, E... 50% AC 111 Example #7 Credit Card Sales and Bad Debts Goff Company allows select customers to charge, all other customers must use the Access Credit Card. The Access Co. charges a 2% fee and remits payment to the company once per month. Goff Co. directly writes off any debt that is determined to be uncollectible. The company also used the allowance method for estimating bad debts. Goff Company had the following transactions related to credit card sales and bad debts in the month of December. Dec. 1 Sold merchandise to a customer using the Access credit card. The merchandise was sold for $500 and had cost $430. Dec. 3 Sold merchandise on credit to a frequent customer. The merchandise had cost $1,000 and was sold for $1,750. Dec. 10 anasonic