Problem C: The James Company uses the percent of receivables method of accounting for uncollectible accounts receivable, and a perpetual inventory system. As of January 1, its Accounts Receivable is $250,000 and Allowance for Doubtful Accounts is $20,000. During the current year, the following transactions occurred. 1) Merchandise costing $2,000,000 was sold on account for $3,600,000. 2) The company collected $3,400,000 from customers on account. 3) $15,000 of accounts receivable were deemed uncollectible and written off. 4) $4,000 of accounts receivable previously written off as uncollectible were recovered. 5) At year-end, James Company estimates that 6% of its accounts receivable are uncollectible. Instructions: Prepare journal entries to record these transactions. What is the balance in accounts receivables and the allowance for doubtful accounts after these entries are posted to the ledger? Accounts Receivable Allowance for Doubtful Accounts Account Title Debit Credit

Problem C: The James Company uses the percent of receivables method of accounting for uncollecable wcciumits Accounts is $20,000. During the current year, the following transuctions occurrod. 1) Merchandise costing $2,000,000 was sold on account for $3,600,000. 2) The company collected $3,400,000 from customens on account. 3) $15,000 of accounts receivable were deemed uncollectible and written off. 4) 54,000 of accounts receivable previously written off as uncollectible were recovered. 5) At year-end, James Company estimates that 6% of its accounts receivable are uncollectible. Instructions: Prepare journal entries to record these transactions. What is the balance in accounts rectivables and the allowance for doubtful accounts after these entries are posted to the ledger? Accounts Receivable Allowance for Doubtful Accounts