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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.
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