This problem continues the Haupt Consulting situation from Problem 7-42 of Chapter 7. Ha...

This problem continues the Haupt Consulting situation from Problem 7-42 of Chapter 7. Haupt reviewed the receivables list from tile January transactions (from Chapter 6). Haupt identified that Gene was not going to pay his receivable from January 19. Haupt uses the allowance method for receivables, estimating uncollectibles to be 3% of credit sales.

Requirements

1. Journalize the entry to record and establish the allowance using the percentage method for January credit sales.

2. Journalize the entry to record the identification of Gene’s bad debt.