Sharks Company had the following account balances at December 31, 2020, prior to recording bad...
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Accounting
Sharks Company had the following account balances at December 31, 2020, prior to recording bad debt expense for the year: Accounts receiveable $1,500,000 Allowance for uncollectible accounts (credit balance) 25,000 Credit sales for 2020 1,750,000 a) What amount should Sharks charge to bad debt expense at the end of 2020 under the income statement method if historically, 4% of credit sales are uncollectible? Prepared the required journal entry to record bad debt expense. b) What amount should Sharks charge to bad debt expense at the end of 2020 under the balance sheet method if historically 5% of year-end receivables are uncollectible Prepared the required journal entry to record bad debt expense.
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