Question: During its first year of operations Sunshine Travel earned revenue

During its first year of operations, Sunshine Travel earned revenue of $530,000 on account. Industry experience suggests that Sunshine Travel’s uncollectible accounts will amount to 3% of revenues. On December 31, 2012, accounts receivable totaled $85,000. The company uses the allowance method to account for uncollectibles.
Journalize Sunshine Travel’s Bad Debt Expense using the percent-of-sales method. Show how Sunshine should report Accounts Receivable on its balance sheet on December 31, 2012.

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  • CreatedApril 29, 2014
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