On November 30, Kissy Co. has $1,080,500 of accounts receivable. Kissy uses the allowance method of accounting for bad debts and has an existing credit balance in the allowance for doubtful accounts of $27,500.

On November 30, Kissy Co. has $1,080,500 of accounts receivable. Kissy uses the allowance method of accounting for bad debts and has an existing credit balance in the allowance for doubtful accounts of $27,500. A. Prepare journal entries to record the following selected December transactions. The company uses the perpetual inventory system. I. Sold $610,000 of merchandise (that cost $357,000) to customers on credit. II. Received $790,200 cash in payment of accounts receivable. III. Wrote off $31,400 of uncollectible accounts receivable. IV. $11,400 of the uncollectible account receivable written off were recovered. V. In adjusting the accounts on December 31, its fiscal year-end, the company estimated that 4.0% of accounts receivable will be uncollectible