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The credit manager of Montour Fuel has gathered the following information about the company's accounts receivable and credit losses during the current year. $8,000,000 1,750,000

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The credit manager of Montour Fuel has gathered the following information about the company's accounts receivable and credit losses during the current year. $8,000,000 1,750,000 Net credit sales for the year Accounts receivable at year-end Uncollectible accounts receivabler Actually written oft during the year Estimated portion of year-end receivables expected to prove uncollectible (per aging schedule) $ 89,000 84,000 173,000 a. Uncollectible accounts expense is estimated at an amount equal to 2.5 percent of net credit sales. b. Uncollectible accounts expense is recognized by adjusting the balance in the Allowance for Doubtful Accounts to the amount indicated in the year-end aging schedule. The balance in the allowance account at the beginning of the current year was $25,000. Consider the effect of the write-offs during the year on the balance in the Allowance for Doubtful Accounts.) c. The company uses the direct write-off method of accounting for uncollectible accounts. Prepare one journal entry summarizing the recognition of uncollectible accounts expense for the entire year under each of the above Independent assumptions. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field.) View transaction list Journal entry worksheet 2 3 Record the estimated uncollectible accounts expense at 2.5% of net credit Prev 1 of 14 !!! Next > Prepare one journal entry summarizing the recognition of uncollectible accounts expense for the entire year under e Independent assumptions. (If no entry is required for a transaction/event, select "No Journal entry required" In th field.) View transaction list Journal entry worksheet Record the entry required to adjust the balance in the allowance account. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general Journal

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