Problem-accounting for uncollectible accounts

Reference no: EM131819383

Question: Accounting for uncollectible accounts using the allowance method (percent-of-sales) and reporting receivables on the balance sheet

Requirements: 1. Journalize Blue's transactions that occurred during 2016. The company uses the allowance method.

2. Post Blue's transactions to the Accounts Receivable and Allowance for Bad Debts T-accounts.

3. Journalize Blue's adjustment to record bad debts expense assuming Blue estimates bad debts as 4% of credit sales. Post the adjustment to the appropriate T-accounts.

4. Show how Blue Mountain Flagpoles will report net accounts receivable on its December 31, 2016, balance sheet.

Reference no: EM131819383

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