net sales on account for the period were $640,000. heart and soul dance. co. uses the percentage of sales method uncollectible accounts. heart and soul dance. co. estimates that 3% of net sales are uncollectible. the balance in Allowance debts is a $980 credit

Bad Debt Expense

Allowance for Bad Debts

january 6 the accounts receivable of Marissa Marco was determined to be uncollectible ad written off $6200

Mar 8 Notice was received that Paul Dante, a customer, was bankrupt. His balance of $4,200 was written off.

May 28 Reinstated the Shin Yun account that had been written off in the preceding year as uncollectible. Entered the receipt of $5400 cash as full settlement of Yun's account