Jars Plus recorded $862,430 in credit sales for the year and $489,000 in accounts receivable. The uncollectible percentage is 2.3% for the income statement method, and 3.0% 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. If an amount box does not require an entry, leave it blank. If required, round final answers to two decimal places. A. Dec. 31 sad Debt Expense 88 88 88 . Allowance for Doubtrul Accounts To record bad debt, income statement method B. Dec. 31 sad Debt Expense Allowance for Doubtful Accounts To record bad debt, balance sheet method C. Dec. 31 sad Dept Expense Allowance for Doubtful Accounts To record bad debt, income statement method Dec. 31 Bad Debt Expense Allowance for Doubtrul Accounts To record bad debt, balance sheet method, previous debit balance D. Dec. 31 Bad Debt Expense Allowance for Doubtrul Accounts To record bad debt, income statement method Dec. 31 sad Debt Expense Allowance for Doubtful Accounts To record bad debt, balance sheet method, previous credit balance 88 88
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.

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