FINANCIAL & MANAGERIAL ACCOUNTING (LL)(W
FINANCIAL & MANAGERIAL ACCOUNTING (LL)(W
9th Edition
ISBN: 9781265464103
Author: Wild
Publisher: MCG
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Chapter 7, Problem 10E
To determine

Concept Introduction: The percent of sales method is based on the assumption that a percentage of a company’s credit sales is uncollectible. The company generally determines the percentage of uncollectible based on prior experience. The percent of sales method is also called as income statement method.

The journal entry to record uncollectible using the percent of sales method.

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