Homework Answers
Credit sales = $4,000,000
Uncollectible accounts = 2% of credit sales
= 4,000,000 x 2%
= $80,000
Journal entry on December 31, 2018 would be as under:
| Date | General Journal | Debit | Credit |
| December 31,2018 | Bad debt expense | $80,000 | |
| Allowance for doubtful accounts | $80,000 |
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