Allowance method: Income statement and balance sheetapproaches.TempeCompany reported accounts receivable of $300,000 and an allow­ance foruncollectible accounts of $31,000 (credit) on the December 31, 19X2, balancesheet. The following data pertain to 19X3 activities and operations: Sales on account $2,000,000 Cash collections from credit customers 1,600,000 Sales discounts 50,000 Sales returns & allowances 100,000 Uncollectible accounts written off 29,000 Collections on accounts that were previously written off 2,700InstructionsPrepare journal entries torecord the sales- and receivables-related trans­actions from 19X3.Prepare the December 31,19X3, adjusting entry for uncollectible ac­counts assuming that uncollectiblesare estimated to be 2% of net credit sales.Prepare the December 31,19X3, adjusting entry for uncollectible ac­counts assuming that uncollectiblesare estimated at 1% of year-end accounts receivable.Compute the amount of theadjusting entry in part (c) assuming that $46,000, rather than $29,000, ofaccounts were written off in 19X3.

"Get 15% discount on your first 3 orders with us"
Use the following coupon
"FIRST15"

Order Now