Check my work Assume that Simple Co. had credit sales of $250,000 and cost of goods...

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Check my work Assume that Simple Co. had credit sales of $250,000 and cost of goods sold of $150,000 for the period. It estim

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Answer 1

Answer #1

Journal Entries

Percentage Of Credit Sales

Sr. No	Account Title	Debit	Credit
	Bad Debt Expenses	2500
	Allowance For Doubtful Account		2500
	(250000*1%)

	(recording of estimated uncollectible accounts)


Allowance Method

Sr. No	Account Title	Debit	Credit
	Bad Debt Expenses	2750
	Allowance For Doubtful Account		2750
	($3000-250)
	(recording of estimated uncollectible accounts)

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Answer 2

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Check my work Assume that Simple Co. had credit sales of $250,000 and cost of goods...