Uncollectible AccountsPercentage of Sales and Percentage of Receivables

At the completion of the current fiscal year ending December 31, the balance of Accounts Receivable for Yang's Gift Shop was $29,000. Credit sales for the year were $350,000.

Required:

Question Content Area

Make the necessary adjusting entry in general journal form under each of the following assumptions. Show the calculation for net realizable value.

1. Allowance for Doubtful Accounts has a credit balance of $340.

a. The percentage of sales method is used and bad debt expense is estimated to be 2% of credit sales.

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