P9-41 Accounting for uncollectible accounts using the allowance method;This problem continues the Davis Consulting situation from Problem P8-33 of;Chapter 8. Davis reviewed the receivables list from the January transactions. Davis;uses the allowance method for receivables, estimating uncollectibles to be 5% of;January credit sales, $4,500. Davis identified on February 15 that a customer was;not going to pay his receivable of $200.;Requirements;1. Journalize the January 31 entry to record and establish the allowance using the;percent-of-sales method for January credit sales.;2. Journalize the entry to record the write-off of the customer?s bad debt.
Paper#23863 | Written in 18-Jul-2015Price : $32