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Uncollectible Accounts-Percentage of Sales and Percentage of Receivables At the completion of the current fiscal year ending December 31, the balance of Accounts Receivable for Yang's Gift Shop was $30,500. Credit sales for the year were $341,000 Required Make the necessary adjusting entry in general journal form under each of the following assumptions. Show calculations for the amount of each adjustment and the resulting net realizable value 1. Allowance for Doubtful Accounts has a credit balance of $325 a. The percentage of sales method is used and bad debt expense is estimated to be 2% of credit sales. If an amount box does not require an entry, leave it blank. Page: DOC. POST.DEBIT CREDIT NO. REF DATE ACCOUNT TITLE 1 20 Dec. 31 Bad Debt Expense Allowance for Doubtful Accounts Accounts receivable, December 31, 20 Less allowance for doubtful accounts Net realizable value b. The percentage of receivables method is used and an analysis of the accounts produces an estimate of $7,010 in uncollectible accounts. If an amount box does not require an entry leave it blank. Page DOC. POST.DEBIT CREDIT NO. REF DATE ACCOUNT TITLE Bad Debt Expense Allowance for Doubtful Accounts 1 20-Dec. 31 Accounts receivable, December 31, 20- Less allowance for doubtful accounts Net realizable value 2. Allowance for Doubtful Accounts has a debit balance of $390 a. The percentage of sales method is used and bad debt expense is estimated to be 1.5% of credit sales. If an amount box does not require an entry, leave it blank. Page: DOc. POST. DEBIT CREDIT DATE ACCOUNT TITLE NO. REF. DEBIT CREDIT 1 20--Dec. 31 Bad Debt Expense Allowance for Doubtful Accounts Accounts receivable, December 31, 20 Less allowance for doubtful accounts Net realizable value b. The percentage of receivables method is used and an analysis of the accounts produces an estimate of $5,865 in uncollectible accounts. If an amount box does not require an entry leave it blank. Page: ACCOUNT TITLE DOC. POST NO. REF DoC POST. DEBIT CREDIT DATE 1 20 Dec. 31 Accounts receivable, December 31, 20-- Less allowance for doubtful accounts Net realizable value

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