COACHED PROBLEMS CP8-1 Recording Accounts Receivable Transactions Using Two Estimation Methods The A.?. Cross Company is well known for its Cross pens. The company recently reported the connect JACCOUNTING LO 8-2 C R following amounts in its unadjusted trial balance as of December 31. Debits Credits Accounts Receivable Allowance for Doubtful Accounts Sales Revenue $30,691,000 $ 952,000 158,312,000 Required: . Assume Cross uses '4 of 1 percent of sales to estimate its bad debt expense for the year. Pre- pare the adjusting journal entry required at December 31 for recording Bad Debt Expense. Assume instead that Cross uses the aging of accounts receivable method and estimates that $1,007,000 of Accounts Receivable will be uncollectible. Prepare the adjusting journal entry The percentage of credit sales method directly calculates Bad Debt Expense. 2. required at December 31 for recording bad debt expense. ance for Doubtful Accounts balance should be. You need to consider the existing balance when determining the adjustment. : The aging of accounts receivable method focuses on calculating what the adjusted Allow