Question

Suomi Test This Question: 1 pt 10 of 15 (3 complete) This Test: 15 pts possible Current > Septel During its first year of operations, Spring Garden Inc. had sales of $439,000, all on account Industry experience suggests that Spring Garden's uncollectibles will amount to 4% of credit sales. At December 31, 2018, accounts receivable total $59.000. The company uses the allowance method to account for uncollectibles N 1. 2. Make Spring Garden's journal entry for uncollectible-account expense using the percent-of-sales method Show how Spring Garden should report accounts receivable on its balance sheet at December 31, 2018 B 1. Make Spring Garden's joumal entry for uncollectible-account expense using the percent-of-sales method (Record debits first, then credits. Exclude explanations from journal entries) nouncement Journal Entry ast Due Assig Date Accounts Debit Credit Dec 31 irrent Assign SER 28 0.0 Accounts Payable Accounts Receivable Allowance for Uncollectible Accounts 2. Show how Si Cash Revenue Uncollectible-Account Expense Less on its balance sheet al December 31 2018 Completed Ass This course (Finan Choose from any list or enter any number in the input fields and then continue to the next question

Answer 1

Answer: 1.5 Journal entry for bad debt expense or uncollectifs expense of sales method all as follows: using percentage Dec 31 uncollectibles Expense Alanan DY 17560 To Allowance for 17560 uncollectible Accounts Note- Uncollectible enpense = $ 439,000 X 4% $17560. Note : I hereby assume that given Sales are on Credit.

2.) in Balance Sheet as on Dec 31, 2018, Accounts Receinabl be reported as follows: Accounts Receinable (-) Allowance for uncollectibel Accounts ($17560) $590210 $41440 Reported in Balance Sheet,

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