Problem:
If a company had sales of $180,000 during the month of October, which also included $120,000 in credit sales. October collections were $90,000.
Additional data:
September 30th we will debit balance in Accounts Receivable for $28,000.
September 30th we will credit balance in Allowance for Uncollectible Accounts, $1,000.
Uncollectible- Account expense, estimated as 2% of credit sales.
Write-offs of uncollectible receivables totaled $1,200
Need help with:
1) Preparing journal to record sales, collections, uncollectible -account expense by the allowance method (percent of sales method), and write -offs of uncollectibles during October.
2) Show the ending balance in Accounts Receivable, Allowance for Uncollectible Accounts, and net Accounts receivable at October 31st.
Question how much would the company expect to collect