Your company prepares financial statements only once a year. In accounting for uncollectible accounts it uses the allowance method.
For the most recent year give general journal entries for the following.
Beginning of the year balances:(No journal entries needed for beg. Balances)
Accounts Receivable 256,200
Allowance for uncollectible accounts 6,250
Uncollectible Accounts Expense -
1. Sales for the year were 1,585,000. 70% of sales are credit sales
2. Collection on credit sales for the year were 1,070,000
3. Wrote off 10500 of specific customer accounts
4a. At year end estimate uncollectible accts to be 1.75% of credit sales
4b. Instead of 4a, the company ages it receivables and estimated 7500 as uncollectible
SHOW ALL WORK - Use Excel