PA6. 9.2 Funnel Direct recorded $1,345,780 in credit sales for the year and $695,455 in accounts receivable. The uncollectible percentage is 4.4% for the income statement method and 4% for the balance...

PA6. 9.2 Funnel Direct recorded $1,345,780 in credit sales for the year and $695,455 in accounts receivable. The uncollectible percentage is 4.4% for the income statement method and 4% for the balance sheet method.

1. Record the year-end adjusting entry for 2018 bad debt using the income statement method.


2. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method.


3. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $13,888; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.

Extracted text: A E F H K L POST. 2 DATE DESCRIPTION REF. DEBIT CREDIT 3 1 20-- 1 4 2 Dec. 31 2 5 3 3 4 4 7 5 8 6 9 7 31 7 10 8 8 11 9 19 12 10 10 13 11 11 14 12 31 12 15 13 13 16 14 14 17 15 15 18 16 16 19 17 31 17 20 18 18 21 19 19 22 20 20 23 21 21 24