Percent of accounts receivable method
a.
Sold $1,351,800 of merchandise (that had cost $977,300) on credit, terms n/30.
b.
Wrote off $18,000 of uncollectible accounts receivable.
c.
Received $667,300 cash in payment of accounts receivable.
d.
In adjusting the accounts on December 31, the company estimated that 1.3% of accounts receivable will be uncollectible.
My answer
a.
Accounts Receivable 1351800
Sales 1351800
Cost of Goods Sold
977300
Merchandise Inventory
977300
b.
Allowance for Doubtful Accounts 18000
Accounts Receivable 18000
c.
Cash 667300
Accounts Receivable
667300
But I don't know how to Solution
d.
Bad Debts Expense ?
Allowance for Doubtful Accounts ?
