Business, 22.09.2021 05:40 itsmichaelhere1

Clark Company uses the allowance method to account for bad debts. To estimate the amount of uncollectible accounts, Clark Company uses the percentage of sales method . A review of the end of the year accounting information finds the following: Net sales for the year, $555,000. This includes $61,000 of cash sales; Ending balance in Accounts Receivable, $77,000; Ending balance in Allowance for Uncollectible Accounts, $507 (debit balance). After discussions with company management, you determine that 4% of net credit sales is a reasonable estimate of uncollectible accounts. Required: Journalize the entry to record bad debts expense for the year ended December 31.

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Clark Company uses the allowance method to account for bad debts. To estimate the amount of uncollec...