During its first year of operations, Spring Garden Plan, Inc. had sales of $458,000, all...
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During its first year of operations, Spring Garden Plan, Inc. had sales of $458,000, all on account. Industry experience suggests that Spring's uncollectibles will amount to 3% of credit sales. At December 31, 2018, accounts receivable total $53,000. The company uses the allowance method to account for uncollectibles. 1. Make Spring's journal entry for uncollectible-account expense using the percent-of-sales method. Show how Spring should report accounts receivable on its balance sheet at December 31, 2018. 2. 1. Make Spring's journal entry for uncollectible-account expense using the percent-of-sales method. (Record debits first, then credits. Exclude explanations from journal entries.) Journal Entry Accounts Date Debit Credit Dec 31 2. Show how Spring should report accounts receivable on its balance sheet at December 31, 2018. Less
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