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During the year, Luke's Hobbies had the following: Net Sales Cash Sale Credit Sales $512,000 214,000 Collection on Credit sales Beginning Accounts Receivable Ending Accounts
During the year, Luke's Hobbies had the following: Net Sales Cash Sale Credit Sales $512,000 214,000 Collection on Credit sales Beginning Accounts Receivable Ending Accounts Receivable 210,000 54,000 Allowance for Doubtful Accounts 2,700 Credit 1. Experience suggests that bad debts will amount to 1.2% of credit sale. The company uses the percent-of-sales allowance method to account for uncollectibles. Journalize the Bad Debt Expense. 2. Assume the same facts as in except Luke's Hobbies uses the percent-of-receivable method. Experience suggests that the uncollectible accounts will amount to 3.75% of accounts receivable. Journalize the adjustment to record the bad debt expense
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