Prepare the journal entry to record bad debt expense

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1. Mckinney and company estimates its uncollectible accounts as a percentage of credit sales. Mckinney made credit sales of $1,500,000 in year one. Mckinney estimates 2.5% of its sales will be uncollectible. Prepare the journal entry to record bad debt expense for Mckinney at the end of year one.

2. Hirsch company buys inventory for $20,000 on terms of 2/10, n/30. It pays within the discount period. prepare the journal entries to record the purchase and the payment under both the gross price and net price methods.

Reference no: EM131782812

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