Adjusting entries at the end of dec 31 assuming each items independently.
I really need help please to solve this problem. I really don't have an any idea yet regarding to this problem.
At dec. 31 2010 before the any adjustments:
* the total receivables at the year-end are 1,585,000.
* the allowance for doubtful accounts has credit balance of 22,325
* net credit sales is 2,100,000.
What would be the adjusting entries at dec. 31, 2010 assume each item independently.
1. It is the policy of the company to maintain an allowance of 3% og. The total receivables.
2. Aging shows that 30,250 of receivables are uncollectible.
3. It is the policy of the company to recognize uncollectible accounts at 1% of net credit sales.