Percent of sales method of accounting
Course:- Accounting Basics
Reference No.:- EM13139187

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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.

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