Record the entry for estimated uncollectible accounts

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Reference no: EM132916319

Question - Accounts Receivable - Uncollectible Accounts - Spacer Corporation's trial balance revealed the following balances in these selected accounts prior to any adjustments:

Accounts Receivable $1,250,000 Debit

Allowance for Doubtful Accounts 41,600 Credit

Credit Sales 4,560,000 Credit

Record the entry for estimated uncollectible accounts using each of the following methods:

a) Percentage of Credit Sales: 2% of credit sales is estimated.

b) Percentage of A/R: 5% of gross accounts receivable is estimated.

Reference no: EM132916319

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