The ledger of Sada Company at 31/12/2022 shows accounts receivable of $415,000, Sales Revenue $580,000, Sales discount 18,000 and Sales Returns and Allowances $40,000 and of Purchase 90,000.

Instructions

Journalize the adjusting entry for the following cases:

1- Sada Company use account receivable method and expected that 3% of the accounts receivable will be uncollectable and the allowance for doubtful accounts has a credit balance of $3,772.

2- Sada Company use account receivable method and expected that 5% of the accounts receivable will be uncollectable and the allowance for doubtful accounts has a debit balance of $6,443.

3- Ford Company use sales method and expected that 7% of the net sales will be uncollectable and the allowance for doubtful accounts has a debit balance of $44,810.

Question Tow

Jad company sold S 178,000 of its receivables for PAL collection company for $ 172,500.

Required:

Journalize the required entry.