Uncollectible Accounts—Percentage of Sales and Percentage of Receivables
At the end of the current year, the accounts receivable account of Malik's Lanscaping Service has a debit balance of $390,000. Credit sales are $2,880,000. Record the end-of-period adjusting entry on December 31, in general journal form, for the estimated uncollectible accounts. Assume the following independent conditions existed prior to the adjustment:
1.Allowance for Doubtful Accounts has a credit balance of $1,840.
a. The percentage of sales method is used and bad debt expense is estimated to be 1% of credit sales.
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