Assume that part of accounts and other receivables on Thompson Toys' balance sheet is $16 million as of February 2, 2010. Also assume that Allowance for Uncollectible Accounts has a credit balance of $550,000 and that Thompson estimates its uncollectible accounts as 0.1 percent of net sales and the amount of sales is $11,019,000,000. Record the adjusting entry to recognize uncollectible accounts using the percentage of net sales method.

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The Answer of Assume that part of accounts and other receivables on Thompson Toys' balance sheet is $16 million as of February 2, 2010. Also assume that Allowance for Uncollectible Accounts has a credit balance of $550,000 and that Thompson estimates its uncollectible accounts as 0.1 percent of net sales and the amount of sales is $11,019,000,000. Record the adjusting entry to recognize uncollectible accounts using the percentage of net sales method.

Assume That Part of Accounts and Other Receivables on Thompson