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Question
A company reports the following amounts at the end of the year (before any year-end adjustment).
| Credit sales for the year | $120,000 | |
| Accounts receivable | 36,000 | |
| Allowance for uncollectible accounts | 1,500 | (credit) |
Record the adjustment for uncollectible accounts (1) using the percentage-of-receivables method, assuming the company estimates 10% of receivables will not be collected, and (2) using the percentage-of-credit-sales method, assuming the company estimates 2% of credit sales will not be collected.
Answer
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