Question: Use the data presented in P6-2, which was selected from the records of May Company for the year ended December 31, 2005. Required: 1. Give

Use the data presented in P6-2, which was selected from the records of May Company for the year ended December 31, 2005.

Required: 1. Give the journal entries for these transactions, including the write-off of the uncollectible account and the adjusting entry for estimated bad debts. Do not record cost of goods sold. Show computations for each entry. 2. Show how the accounts related to the preceding sale and collection activities should be reported on the 2005 income statement. (Treat sales discounts as a contra-revenue.)

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