Exercise $8-11$ Estimating bad debt expense$-$percentage of sales $183$

CHECK FIGURE: d$.$ Accounts receivable $($net$)=$$$232,700$

Selected unadjusted account balances at December $31,2023,$ are shown below for Demron Servicing

$\backslash$table$[[$Accounts receivable,Debit,Credit$],[$Allowance for doubtful accounts.,$$70,000,],[,,$$ $1,100],[$Sales $($all on credit$).\_....,,480,000],[$Sales discounts,$8,000,]]$

Required

a$.$ Demron estimates that $1\mathrm{.}5\%$ of net credit sales will prove to be uncollectible. Prepare the adjusting entry required on December $31.2023,$ to estimate uncollectible receivables.

b$.$ During $2024,$ credit sales were $$620,000($cost of sales $$406,500),$ sales discounts of $$12,000$ were taken when accounts receivable of $$440,000$ were collected; and accounts written off during the year totaled $$10,000.$ Prepare the entries for these transactions.

c$.$ Record the adjusting entry required on December $31,2024$ to estimate uncollectible receivables, assuming it is based on $1\mathrm{.}5\%$ of net credit sales.

d$.$ Show how accounts receivable would appear on the December $31,2024,$ balance sheet.