Q3:

A) Salalah companys recent financial statements showed the following information.

Net Sales	250,000 OMR
Accounts Receivables	180,000 OMR

The management made two estimates for the uncollectible receivables

- It can be 4.5 % of net sales or

- It can be 3.2 % of accounts receivables

Calculate and record journal entries in each case.

B) If the company had already recognized an allowance amount of 8,000 OMR, make the journal entry. In this question, make the solution only for net sales case.