BUAD 111 Chapter 8 Homework Assignment Question 1 The following information relates to SummerCo Ltd. which has a December 31 year end. The company uses the percentage-of-sales method to provide for uncollectible accounts receivable. Year 1 Sales revenue $ 976,000 December 31, Year 1 accounts receivable balance 103,000 December 31, Year 1 allowance for doubtful accounts balance* 650 Bad debts estimation method: 1.2% of sales revenue. * Credit balance Required: A. Give the needed adjusting entry at December 31, Year 1 to provide for uncollectible accounts. B. Compute the NET** accounts receivable amount that would appear on the December 31, Year 1 balance sheet ** Accounts receivable minus the allowance for doubtful accounts. C. Give the November 15, Year 2 journal entry to write off the following accounts that have been determined to be uncollectible: Customers B, C, and F totaling $12,800