During its first year of operations, Fall Wine Tour earned 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 uncollectible.
Read the requirements:
1) Journalize Fall Wine Tour's Bad Debts Expense using the percent-of-sales method.
2) Show how to report accounts receivable on the balance sheet at December 31, 2018.
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Home » Business » During its first year of operations, Fall Wine Tour earned 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.