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During its first year of operations, Winter Getaway, Inc. had sales of $470,000, all on account. Industry experience suggests that Winter's uncollectibles will amount to
During its first year of operations, Winter Getaway, Inc. had sales of $470,000, all on account. Industry experience suggests that Winter's uncollectibles will amount to 4% of credit sales. At December 31, 2018, accounts receivable total $57,000. The company uses the allowance method to account for uncollectibles. 1 2. Make Winter's journal entry for uncollectible-account expense using the percent-of-sales method. Show how Winter should report accounts receivable on its balance sheet at December 31, 2018. 1. Make Winter's journal entry for uncollectible-account expense using the percent-of-sales method. (Record debits first, then credits. Exclude explanations from journal entries.) Journal Entry Date Accounts Debit Credit Dec 31 2. Show how Winter should report accounts receivable on its balance sheet at December 31, 2018 Less
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