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Question - During its first year of? operations, Summer, Sand, and Castles Resort earned net credit sales of $376,000. Industry experience suggests that bad debts will amount to 1?% of net credit sales. At December? 31, 2018?, accounts receivable total $38,000. The company uses the allowance method to account for uncollectibles.
Required -
1. Journalize Summer's Bad Debts Expense using the? percent-of-sales method.
2. Show how to report accounts receivable on the balance sheet at December? 31, 2018.
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