Question $2-13$ marks

Credit sales for this company total $$500,000$

Percentage of credit sales uncollectible are $1\%$

Aging of Accounts Receivable $0$ to $10$ days $$10,000-$ uncollectible estimated to be $2\%11$ to $20$ days $$15,000-$ uncollectible estimated to be $10\%21$ to $30$ days $$12,000-$uncollectible estimated to be $15\%$ Over $30$ days $$5,000-$ uncollectible estimated to be $25\%$

An existing balance of $$400$ credit balance exists in the Allowance for Doubtful Accounts Account $($hint: to use in Aging A$/$R method$)$

The year end accounts receivable balance is $$42,000$ for the December $31,2016$ year end.

During $2017($March $1,2017),$ a specific accounts receivable account was determined uncollectible for J$.$ Spratt for $$250$ and written off.

On May ${15}^{th},2017,$ J$.$ Spratt determined he was able to pay $$200$ of the original amount he owed.

Required

Using the Credit Sales Method, create the year end journal to set up the balance in the Allowance For Doubfful Accounts for $2016,$ as well as the journal entries for $2017.$

Using the Aging of Accounts Receivable Method, create the year end journal to setup the balance in the Allowance For Doubtful Accounts for $2016,$ as well as the journal entries for $2017.$