P9-41 accounting for uncollectible accounts using the allowance method.

This problem continues the Davis consulting situation from problem P8 33 of chapter 8. Davis reviewed The receivables list from January transactions. Davis uses the allowance method for receivables, estimating uncollectible to be 5% of January credit sales, $4500. Davis identified on February 15 bedded a customer was not going to pay his receivable of $200.

Requirements

1. Journalize the January 31 entry to record and establish the allowance using the percent of sales method for January credit sales.

2. Journalize the entry to record the right off of the customers bad debt.

175 % 175% | 625 of 1182 > Continuing Problem P9-41 Accounting for uncollectible accounts usingt al lowance method This problem continues the Davis Consulting situa i f Problem P8-33 of hapter 8. Davis reviewed the receivables list from th E iary transactions. Davis uses the allowance method for receivables, estimating uncollectibles to be 5% of January credit sales, $4,500. Davis identified on February 15 that a customer was not going to pay his receivable of $20. Requirement 1. Journalize the January 31 entry to record and establish the allowance using the percent-of-sales method for January credit sales. 2. Journalize the entry to record the write-off of the customer's bad debt. the web and Windows oe@@Ell