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On December 31, 2008 Crawford Resorts estimated that 1.5 percent of its net sales of $400,000 would become uncollectible. The company recorded this amount as an addition to Allowance for Doubtful Accounts. On May 11, 2009, Crawford Co. determined that Kevin Hayes's account was uncollectible and wrote off $1,100. On June 12, 2009, Hayes paid the amount previously written off.
Instructions
(A) Prepare the journal entries on December 31, 2008; May 11, 2009; and June 12, 2009.
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