Paul is working on his company's financial statements for the month of June, and he would like to account for any potential accounts receivable that he is not likely to collect. Paul's company typically allows his clients up to 60 days to make payments, so he opts to use an accrual-based method to account for those uncollectible accounts. During June, the company sold $50000, 75% of which was on credit. In Paul's experience, 20% of sales made on credit become uncollectible. 

What amount would Paul record in his monthly journal entry to account for uncollectible credit sales, and which accounts would he use?

Answer rating: 100% (QA)

Paul would record an allowance for doubtful accounts in his monthly journal entry to account for unc... View the full answer