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1. On December 31, 2010, Jarnigan Co. estimated that 2% of its net sales of $400,000 will become uncollectible. The company recorded this amount as an addition to Allowance for Doubtful Accounts. On May 11, 2011, Jarnigan Co. determined that Terry Frye's account was uncollectible and wrote off $1,100. On June 12, 2011, Frye paid the amount previously written off.
Instructions
Prepare the journal entries on December 31, 2010, May 11, 2011, and June 12, 2011.
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