Part 1: Williams card shop is planning to expand. Before it expands, the owner wants to review the uncollectible accounts. William asks you to calculate the percentage of uncollectible accounts per year.

Year	Net Sales	Uncollectible Accounts
Year 2	$ 23,000	$ 800
Year 3	28,750	1,200
Year 4	46,000	1,345
Year 5	52,000	1,150

Instruction: Calculate the percentage of uncollectible accounts per year.

Part 2:

Below are the end-of-period account balances for several stationery and office supply companies:

Name of the Companies	Sales	Sales Discount	Sales Returns and allowances	Percentage of Net Sales Uncollectible
Andrews Co	$142,360	$1,423	$936	2
The Book Nook	$209,100	$3,180	$1,139	1
Cable Inc	$173,270	$1,730	$1,540	1
Davis Inc	$65,460	$650	$690	2
Ever Sharp Co	$95,085	$900	$1,035	1

Each company uses the percentage of net sales method to estimate its uncollectible accounts expense. The parentage used by each company is also listed.

Instructions:

Calculate the amount of the adjustment for uncollectible accounts expense using the percentage of net sales method.

Record the adjusting entry for the estimated uncollectible accounts expense for Davis Inc.