Brink Corporation uses the perpetual inventory system and the allowance method for estimating uncollectible accounts.

Instructions

Jan 5 Sold merchandise to Amy Ward for $1,500, terms n/15. The merchandise cost $900.

1. Acounts RECEIVABLE 1500 DR

SALES 1500 CR

2. COGS 900 DR

MERCHANDISE INVENTORY 900 CR

Apr 15 Received partial payment of $500 from Amy Ward.

Aug 21 Wrote off as uncollectible the balance of the Amy Ward account when she declared bankruptcy.

Oct 5 Received a cheque for $350 from Amy Ward. No further collections are expected.

Prepare entries to record the transactions above for Brink Corp that uses the perpetual inventory method: