I. Account Receivable (10 points) Cavana Company uses the allowance method in accounting for uncollectible...
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I. Account Receivable (10 points) Cavana Company uses the allowance method in accounting for uncollectible accounts. Past experience indicates that 1% of net credit sales will eventually be uncollectible. Selected account balances at December 31, 2016, and December 31, 2017, appear below: 12/31/16 12/31/17 Net Credit Sales $400,000 $450,000 Accounts Receivable 75,000 100,000 Allowance for Doubtful Accounts 5,000 ? Instructions (a) Record the following events in 2017. Aug. 10 Determined that the account of Salsa for $1,000 is uncollectible. Sept. 12 Determined that the account of Toms for $4,000 is uncollectible. Oct. 10 Received a check for $550 as payment on account from Salsa, whose account had previously been written off as uncollectible. She indicated the remainder of her account would be paid in November. Nov. 15 Received a check for $450 from Salsa as payment on her account
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