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8. Angela Merkel Inc. has net credit sales of $1,500,000 in 2018 and a credit balance of $900 in the Allowance for Doubtful Accounts at
8. Angela Merkel Inc. has net credit sales of $1,500,000 in 2018 and a credit balance of $900 in the Allowance for Doubtful Accounts at year end. As of December 31, 2018, $450,000 of accounts receivable remain uncollected.
Prepare the journal entries for the following:
1. On Dec 31, 2018 credit manager of the company estimates that 5% of net credit sales will be uncollectible.
2. On June 19, 2019, the credit manager of Angela Merkel Inc. authorizes a write-off of the $1500 balance owed by Emmanuel Macron.
3. On June 22, 2019, Emmanuel Macron sent a check to Angela Merkel Inc. for the previously written off $500.
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