Reuben sells football equipment to major colleges and universities. Foster Limited maintains their accounting records...
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Accounting
Reuben sells football equipment to major colleges and universities. Foster Limited maintains their accounting records on a calendar year. Total sales for 2018 totaled $3,750,000. The beginning balance on January 1, 2018 in the allowance for doubtful accounts was $50,000. During the year 2018 Foster Limited wrote-off $40,000 of accounts receivable as uncollectible. On December 31, 2018, the balance in the accounts receivable account was $575,000. Foster Limited calculates their uncollectible accounts based on aging their accounts receivable (balance sheet approach). On December 31, 2018 Foster Limited estimated their uncollectible accounts to be $35,000. The journal entry on December 31 would include
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