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Applying the allowance method (percent-of-sales) to account for uncollectibles During its first year of operations, Fall Wine Tour earned net credit sales of $311,000. Industry

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Applying the allowance method (percent-of-sales) to account for uncollectibles

During its first year of operations, Fall Wine Tour earned net credit sales of $311,000. Industry experience suggests that bad debts will amount to 3% of net credit sales. At December 31, 2018, accounts receivable total $44,000. The company uses the allowance method to account for uncollectible. Requirements 1. Journalize Fall Wine Tour's Bad Debts Expense using the percent of sales method. 2. Show how to report accounts receivable on the balance sheet at December 31, 2018

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