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Need help!! Will rate Uncollectible Accounts-Percentage of Sales and Percentage of Receivables At the end of the current year, the accounts receivable account of Malik's
Need help!! Will rate
Uncollectible Accounts-Percentage of Sales and Percentage of Receivables At the end of the current year, the accounts receivable account of Malik's Lanscaping Service has a debit balance of $390,000. Credit sales are $2, 860,000. Record the end-of-period adjusting entry on December 31, in general journal form, for the estimated uncollectible accounts. Assume the following independent conditions existed prior to the adjustment: Allowance for Doubtful Accounts has a credit balance of $1, 770. a. The percentage of sales method is used and bad debt expense is estimated to be 1% of credit sales. If an amount box does not require an entry, leave it blank. b. The percentage of receivables method is used and an analysis of the accounts produces an estimate of $30, 330 in uncollectible accounts. If an amount box does not require an entry, leave it blank. Allowance for Doubtful Accounts has a debit balance of $1, 930. a. The percentage of sales method is used and bad debt expense is estimated to be 3/4 of 1% of credit sales. If an amount box does not require an entry, leave it blank. b. The percentage of receivables method is used and an analysis of the accounts produces an estimate of $29, 890 in uncollectible accounts. If an amount box does not require an entry, leave it blankStep by Step Solution
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