The accounts of Stackhouse Company as of 2010 December 31, show Accounts Receivable, USD 190,000; Allowance for Uncollectible Accounts, USD 950 (credit balance); Sales, USD 920,000; and Sales Returns and Allowances, USD 03,000. Prepare journal entries to adjust for possible uncollectible accounts under each of the following assumptions:
a. Uncollectible accounts are estimated at 1 percent of net sales.
b. The allowance is to be increased to 3 percent of accounts receivable.
Jun 20 2017 05:41 AM