9. Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The uncollectible percentage is 2.3% for the income statement method, and 3.6% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $10,220, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $5,470, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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9. Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts
receivable. The uncollectible percentage is 2.3% for the income statement method, and
3.6% for the balance sheet method.
A. Record the year-end adjusting entry for 2018 bad debt using the income statement
method.
B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method.
C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of
$10,220, record the year-end entry for bad debt using the income statement method, and
then the entry using the balance sheet method.
D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of
$5,470, record the year-end entry for bad debt using the income statement method, and
then the entry using the balance sheet method.
Transcribed Image Text:9. Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The uncollectible percentage is 2.3% for the income statement method, and 3.6% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $10,220, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $5,470, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
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