Data for the next 4 questions: Sara Company uses Allowance Method for accounting for bad...
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Accounting
Data for the next 4 questions: Sara Company uses Allowance Method for accounting for bad debts. On December 31st,2017, Sara Company reports the following financial information before adjustments. Debit Credit Accounts Receivable Allowance for Doubtful Accounts Net Sales (all credit) $160,000 $2,000 $800,000 Q10. Provide adjusting journal entry as of Dec. 31, 2017, assuming that Sara estimates bad debts at 5% of accounts receivable. Q11. Provide adjusting journal entry as of Dec. 31, 2017, assuming that Sara estimates bad debts at 1% of sales. Q12. On Jan. 15, 2018, Sara was informed that one of the customers who owed $500 has declared bankruptcy and is out of business. Provide journal entry that should be made by Sara Company. Q13. If Sara Company was using Direct Write-off Method, what would have been the journal entry on Jan. 15, 2018, when Sara was informed that one of the customers who owed $500 has declared bankruptcy and is out of business? Provide the journal entry
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