Our Business is Required to Report the DEC-31 Balance Sheet and other Financial Statements using GAAP Rules to the Bank.

Our Business is reviewing the Accounts Receivable Account, using the Allowance Method.

1. Jan 1 The Beginning Balance in the Accounts Receivable Account was $300,000

2. Jan 1 The Beg Balance in the Allowance for Uncollectible Accounts was $30,000, Credit Balance.

3. During the Year Sales Revenues on Account were $3,000,000.

4. During the Year Cash Collected from Customers was $2,500,000.

5. During the Year The Corp wrote off Customers Accounts in the Amount of $25,000.

6. At DEC-31 We need to make a Journal Entry to record the Year End (Dec-31) Allowance for Un-Collectible Amounts using an Estimate that is Equal to 4% of the Ending Accounts Receivable Balance, that is estimated We will not Collect.