During its first year of operations, Fall Wine Tour eamed net credit sales of $3

Question

During its first year of operations, Fall Wine Tour eamed net credit sales of $311,000. Industry experience suggests that bad debts will amount to 3% of net credit sales. At December 31, 2018, accounts receivable total $44,000. The company uses the allowance method to account for uncollectibles. Read the requirements. Requirement 1. Jourmalize Fall Wina Tour's Bad Dabts Expanse using the percent-of-sales method (Racord dehits first, then credits Salact the explanation on the last line of the journal entry tabla ) Date Accounts and Explanation Debit Credit Dec. Requirements 1. Joumalize Fall Wine Tour's Bad Debts Expense using the percent-of-sales 2. Show how to report accounts receivable on the balance sheet at December 31, 2018 Print Done

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount Net credit sales         311,000.00 Bad debt expense at 3%              9,330.00 Dr Cr Bad Debt expense Dr              9,330.00 To Allowance for Bad debts              9,330.00 Accounts receivable            44,000.00 Allowance for doubtful debts            (9,330.00) Net Accounts receivable            34,670.00

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