>> Accounting Basics
The Connecting company uses the percent of sales method of accounting for uncollectible accounts receivable. During the current year, the following transaction occurred:
Sept 7 connecting Company determined that $8,100 account receivable of the Helena company was uncollectible, and wrote it off.
Oct 15 Connecting Company determined that the $2,500 account receivable of the Tree Company was uncollectible and wrote it off.
Nov 9 Helen Company paid $6,000 of the amount owned to the connecting Company. Connecting company does not expect further collections from the Helena company.
Dec 31 Connecting Company estimates the 0.5% of its $1,900,000 of credit sales would be uncollectible.
Prepare the general journal entries to record these transactions.