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 325,400
Allowance for uncollectible accounts 4,500
Uncollectible Accounts Expense -
1 Sales for the year were 2,465,000. 60% of sales are credit sales
2 Collection on credit sales for the year were 1,300,000
3 Wrote off 6500 of specific customer accounts
4a At year end estimate uncollectible accts to be 1.5% of credit sales
4b Instead of 4a, the company ages it receivables and estimated 6000 as uncollectible