A) The journal entry using the percent-of-receivables method is as follows:
Debit Bad Debts Expense $6,620
Credit Allowance for Uncollectible accounts $6,620
B) The journal entry using the percent-of-receivables method is as follows:
Debit Bad Debts Expense $11,120
Credit Allowance for Uncollectible accounts $11,120
<h3>What is the percent-of-receivable method?</h3>
The percent-of-receivable method is one of the methods for making allowances for uncollectible accounts. Other methods include using an estimated percentage of the sales revenue and aging the accounts receivable
This method uses an estimated percentage of the receivables at the end of the financial period to compute the ending allowance for uncollectible accounts.
<h3>Data and Calculations:</h3>
December 31, 2023:
Accounts receivable
Beginning balance = $29,000
Revenue for 2024 = 462,000
Cash collected = (324,000)
Accounts written off = (6,000)
Ending balance $161,000
Allowance for uncollecdtible accounts = 2% or $3,220 ($161,000 x 2%)
A) Allowance for uncollectible accounts:
Beginning balance = $2,600 (credit)
Accounts written off (6,000)
Ending balance (3,220)
Bad debts expense = $6,620
<h3>Transaction analysis</h3>
Bad Debts Expense $6,620 Allowance for Uncollectible accounts $6,620
B) Allowance for uncollectible accounts:
Beginning balance = ($1,900)
Accounts written off (6,000)
Ending balance (3,220)
Bad debts expense = $11,120
<h3>Transaction Analysis</h3>
Bad Debts Expense $11,120 Allowance for Uncollectible accounts $11,120
Learn more about making allowances for uncollectible accounts at brainly.com/question/15522384
