Selected unadjusted account balances at December are shown below for Demron Servicing.
Account Debit Credit
Accounts receivable $
Allowance for doubtful accounts $
Sales all on credit
Sales discounts
Required:
a Assume that Demron estimates uncollectible accounts as of receivables. Prepare the adjusting entry required on December to estimate uncollectible receivables.
b During credit sales were $cost of sales $; sales discounts taken were $; accounts receivable collected were $; and accounts written off during the year totalled $ Prepare the entries to record these transactions.
c Record the adjusting entry required on December to estimate uncollectible receivables, assuming it is based on of receivables.
d Show how accounts receivable would appear on the December balance sheet.
