The Corning Company uses the percent of sales method of accounting for uncollectible accounts receivable.At the beginning of the current year,the Allowance for Doubtful Accounts had normal balance of $8,000.The following transactions took place during the current year:

Required:
Part a.Prepare journal entries to record these transactions.
Part b.Determine the balance of the Allowance for Doubtful Accounts at the end of the current year.Assume that the transactions above are the only transactions affecting this account during the year.

Question

The Corning Company uses the percent of sales method of accounting for uncollectible accounts receivable.At the beginning of the current year,the Allowance for Doubtful Accounts had normal balance of $8,000.The following transactions took place during the current year:
  
Required:
Part a.Prepare journal entries to record these transactions.
Part b.Determine the balance of the Allowance for Doubtful Accounts at the end of the current year.Assume that the transactions above are the only transactions affecting this account during the year.

Quizplus · Accepted Answer

The Answer of The Corning Company uses the percent of sales method of accounting for uncollectible accounts receivable.At the beginning of the current year,the Allowance for Doubtful Accounts had normal balance of $8,000.The following transactions took place during the current year:
  
Required:
Part a.Prepare journal entries to record these transactions.
Part b.Determine the balance of the Allowance for Doubtful Accounts at the end of the current year.Assume that the transactions above are the only transactions affecting this account during the year.

The Corning Company Uses the Percent of Sales Method of Accounting