During its first year of operations, Summer, Sand, and Castles Resort, Inc. had sales of...
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During its first year of operations, Summer, Sand, and Castles Resort, Inc. had sales of $416,000, all on account. Industry experience suggests that Summer's uncollectibles will amount to 1% of credit sales. At December 31, 2018, accounts receivable total $53,000. The company uses the allowance method to account for uncollectibles. 1. 2. Make Summer's journal entry for uncollectible-account expense using the percent-of-sales method. Show how Summer should report accounts receivable on its balance sheet at December 31, 2018 1. Make Summer'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 Date Accounts Debit Credit Dec 31 2. Show how Summer should report accounts receivable on its balance sheet at December 31, 2018 Less
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