Donton Consulting performs systems consulting and sells

accounting software. Donton reviewed the receivables list

from the January transactions. Donton uses the

allowance method for receivables, estimating

uncollectibles to be $4\%$ of January sales revenue of

$$11,100.$ Donton identified on February $15$ that a

customer was not going to pay his receivable of $$230.$

Requirements

Journalize the January $31$ entry to record

and establish the allowance using

the percent$-$of$-$sales method for January

sales revenue.

Journalize the entry to record the write$-$off of

the customer's bad debt.

Requirement $1.$ Journalize the January $31$ entry to record and establish the allowance using the percent$-$of$-$sales

method for Januarycredit sales. $($Round to the nearest whole dollar. Record debits first, then credits. Select the

explanation on the last line of the journal entry table.$)$