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During its first year of operations, Precious Cargo, Inc. had sales of $427,000, all on...

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Accounting

During its first year of operations, Precious Cargo, Inc. had sales of $427,000, all on account. Industry experience suggests that Precious Cargo's uncollectibles will amount to 2% of credit sales. At December 31,2021, accounts receivable total $52,000. The company uses the allowance method to account for uncollectibles.
Make Precious Cargo's journal entry for uncollectible-account expense using the percent-of-sales method.
Show how Precious Cargo should report accounts receivable on its balance sheet at December 31,2021.
Make Precious Cargo's journal entry for uncollectible-accnt expense using the percent-of-sales method. (Record debits first, then credits. Exclude explanations from journal entries.) Journal Entry
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